DAX Index Set to Close Lower As Coronavirus 2nd Wave Spooks Markets
The German DAX index looks set for a lower close this Thursday, as part of a generally uninspiring trading session across markets all over the world. This drop was as a result of rising coronavirus cases that constitute the 2nd wave in many parts of the world. Indices across Europe are all set to close lower as well.
Losses on the DAX were led by Wirecard AG, which saw a 64.714% collapse on its share price after auditors refused to sign off on an account on which they allegedly discovered $2.1billion in missing funds. Lufthansa Henkel VZO and Deutsche Bank also closed lower on the day, notching up losses of 4.01%, 3.58% and 2.05% respectively. Volkswagen completed the top 5 losers chart, shedding 1.64%.
Germany continues to battle with a high coronavirus burden, and the DAX index has seen muted trading after Tuesday’s strong showing. It ends the day at 12483.84 or -0.81%.
The DAX is now trading between the 200-day moving average below, and the 12432.83 resistance. Below the 200-day moving average lies the 11995.83 support, which resisted Monday’s candle but was taken out by Tuesday’s move, rendering a support in a S-R flip. 12882.68 remains the price to beat for buyers in order for the uptrend to continue. This move would have to breach 12432.83 and 12625.62 to materialize. A break of 12882.68 targets the 13191.15 price level, with a chance of hitting 13473.91 also on the cards if the DAX is able to get a lift from positive fundamentals.
On the flip side, a rejection and subsequent breakdown of the 200-day moving average and the 11713.07 support brings 11326.43 into focus, with 11044.72 also presenting itself as a potential target if the decline is strong enough.