The DAX index is little changed today as focus remains on the Thanksgiving weekend. With most institutional investors in holiday, overall volume is relatively low.
Automobiles are the worst-performing stocks in Germany today. BMW shares have dropped by more than 1.62%, becoming the worst in the DAX. The company has struggled after problems with its Chinese joint venture partner. The firm, which is owned partly by BMW, has struggled to pay some of its debt. It has become one of the biggest state-owned enterprises to default on their obligations.
Volkswagen and Continental, a leading supplier to automobiles, are the other major laggards, having fallen by more than 1.78%. Daimler, owner of Mercedes, has dropped by 0.50%.
On the other hand, the best-performing stocks in the DAX index are Henkel, SAP, Deutsche Bank, and Adidas.
DAX index technical outlook
Looking at the daily chart, we see that the DAX index is at a strong resistance level. It is trading at €13,292, where it has been for the past few days signalling that bulls are having a tough time going up. It is also slightly above the 25-day moving average while its volatility, as measured by the Average True Range (ATR) has fallen.
Therefore, while I don’t expect much to happen today, I suspect that the price will have a major breakout at the start of the coming month. If this happens, the key support and resistance levels to watch will be €12,900 and €13,500.
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DAX technical chart
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