Tariff Cancellation Send DAX Index Close to Two Year Highs
DAX Index jumps higher midday after news that US and China had agreed to cancel existing tariffs in different stages. Earlier today the German Industrial Production s.a. (month over month) came in at -0.6%, below forecasts of -0.4% in September, the yearly reading came in at -4.3% also below expectations of -2.9%.
Yesterday, German Services PMI came in at 51.6 beating forecasts of 51.2 in October, and the Composite PMI came in at 48.96 also above forecasts of 48.6 in October.
DAX bullish momentum keeps pushing the Dax index to fresh yearly highs with small daily corrections making higher highs and lower lows as the Dax benchmark trades above all major daily moving averages and inside the ascending channel which started back in December 2018. Dax has reached an overbought level that we haven’t seen in years as the RSI 14 hovers at 78.05 a level that might trigger profit-taking.
As the focus is in on the upside, the immediate resistance stands at 13,300 today’s high, a convincing break above that level might drive the index up to 13,368 the high from January 29th, 2019. Bullish momentum for Dax benchmark will be intact as long as the index trades inside the ascending channel which started back in December 2018.
On the flip side, first support for DAX index stands at 13,227 today’s low, while sellers below that level will target the 12,935 mark where the ascending trendline provides support low from October 23rd at 12,700. Next support level for DAX index stands at the 50-day moving average at 12,376.
In London the FTSE 100 adds 0.21% at 7,412 as the pound trades at 1.2866, CAC 40 is 0.25% higher at 5,882. In Wall Street, Dow Jones futures, are 0.55 per cent higher at 27,581, the S&P 500 is 0.44 per cent higher at 3,089 while Nasdaq is 0.55% higher at 8,252.More content