DAX Retreat On Profit Taking – Positive Bias Remains

dax index
dax

Dax index seesaws on Thursday after four straight days of gains as investors await a deal on the negotiations in Washington for a new stimulus package that will boost the coronavirus battered U.S. economy.

Germany Consumer Price Index came in at -0.5% in line with the expectations for July; the yearly CPI also matched expectations at -0.1%. The Harmonized Index of Consumer Prices reported at 0%. An IFO survey showed that German companies expect the business to return to normality in 11 months from now.

On the trade front, China and the USA will return to the negotiations during the weekend to discuss the progress of the deal that agreed in January.

Thyssenkrupp is under selling pressure after it reported losses up to one billion, as the coronavirus lockdown damaged the demand for its products. Airbus is 3% lower after U.S. administration kept the 15% tariffs on the aviation industry. Deutsche Telekom is among the top performers while Adidas is adding 2.12% at 269.

Dax Index Technical Analysis

Dax index is 0.12% lower at 13,040 as the index stops for breath after the recent rally that drove the index above the 13,000 mark. Bulls are in full control of the index and are approaching the rising trend channel that drove the index since the March lows. 

Dax first support is at 13,007 today’s low. The next level that bears would target is at 12,591 the 50-day moving average. A break below would attract more sellers targeting 12,356 the low from August 3.

On the upside, immediate resistance would be met at 13,075 today’s top. More selling pressure stands at 13,112 the high from yesterday’s trading session. The high from July 21 at 13,308 would provide the next supply zone. 

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Dax Index Daily Chart

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