DAX Index turns lower today as a no-deal Brexit looks possible scenario amid disagreement between the UK and the EU over the Irish Customs Union. Investors dump equities around the globe as the slowdown spreads around the globe. Markets await the restart of trade negotiations between USSS and China later this week. ECB, cut its deposit interest rate at -0.50% and launched a new round of monthly bond purchases. The German main stock index has gained over 9% since the August lows and 16% in 2019.
Dax index is 0.62% lower at 12,022 having hit the daily low at 11,998 dragged by Lufthansa -3.44, Wirecard AG -3.11%, Deutsche Bank AG -2.31%, Continental AG -2.55%, and Bayer -1.69%.
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Dax Support and Resistance
DAX index today’s down move cancels the recent positive momentum which started from August 15th lows (11,275) as the index breaks failed to regain the 100-day moving average but is also testing the 50-day moving average, which if breached will have negative implications for DAX. On the downside, immediate support for DAX index stands at 11,998 today’s low, while sellers after will target the 200-day moving average at 11,810. On the upside, the immediate resistance is at 12,097 today’s high and then at 12,492 the high from October 1st, a convincing break above might drive prices up to yearly highs at 12,653. Bulls will gain momentum if Dax Index returns inside the ascending channel which started back in December 2018. Today is a critical session for DAX as it is testing the support at 12,000.