DAX 30 Bounces As Bargain Hunters Step In
- DAX 30 trades higher as bargain hunters appear to have stepped in.
- The short-term trend is bearish below the April 3 afternoon intraday high of 9972.
- Overnight, the Caixin China PMI Services for April declined to 51.8 from 52.2, while this morning, Markit U.K. PMI Services declined to 52.3 from 53.6.
The DAX 30 (CFD: GER30) was up this morning, as it appears that the slide over the last few days has attracted bargain hunters with the DAX 30 trading relativity near to its April monthly low of 9437 (363 points away) and far away from its April high of 10,488 (682 points away).
In the short-term the trend is bearish below the April 3 afternoon intraday high of 9972, a level which is also near the opening level yesterday. If this downtrend continues to dominate, the long-term trend, which has been bullish since February, could come under pressure. The most recent swing low of the bullish trend since February is the April 7 low of 9437 and the next major support level below this level is the February 24 low of 9123.
In the short-term, this morning’s low of 9802 is a support level, followed by the April 4 high of 9750 and the April 12 low of 9615.
The next resistance level beyond the intraday high of 9972 is the April 29 low of 10,025 and followed by the May 2 high of 10,156.
Overnight, the Caixin China PMI Services for April declined to 51.8 from 52.2, which suggests that the Chinese service sector is growing at a slower pace than March, whilst this morning, Markit U.K. Services PMI declined to 52.3 from 53.6. All of the U.K. PMI’s have moved lower in April and suggest weak economic growth in the U.K. The softer conditions are blamed on the pending Brexit Referendum.
DAX 30 | CFD: GER30
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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