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DAX Stops at a Major Resistance

Dax Index
Dax Index

DAX Index has opened 0.11% higher this morning but has rotated back lower as investors wait for further developments in Brexit and US-China trade talks. It hit a major resistance near the 12900 handle yesterday as it continues to test the 15-month high of 12887.

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[vc_single_image image=”14654″ img_size=”medium” alignment=”center” style=”vc_box_rounded” onclick=”custom_link” img_link_target=”_blank” link=”https://www.investingcube.com/q4-global-market-outlook-eurusd-gold-crude-oil-bitcoin-sp-500/”]DAX Index pushed higher yesterday after positive earnings from market heavyweights Daimler and BASF, although the German PMI disappointed. The Markit Manufacturing PMI improved to 41.9 in October from 41.7 in September, but still weaker than 42, which was projected by markets.

Early this morning, The GfK Consumer Confidence came at 9.6, which is lower than 9.8 expected by market analysts. This is an important indicator as it measures the level of consumer confidence in economic activity.

Technically, DAX Index hit the major resistance yesterday in the context of 78.6% Fibonacci retracement of the June 2018 high – December 2018 low. Furthermore, DAX Index is also retesting the 2018 July high. On the downside, intraday support is located at 12815.

For more on DAX Index, see DAX Index Reaches New 2019 High, German PMI Disappoints

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