DAX 30 Gives Back Some Of This Week’s Gains
- The DAX 30 was, at the time of writing, still bullish and in line with the trend in place since February.
- Last week’s low of 9739 is the most recent swing low of this bullish trend, while the April high of 10,490 was the resistance level and the April low of 9433 the support below last week’s low of 9739.
- There are no major German or Eurozone data events on deck until tomorrow morning.
The DAX 30 (CFD: GER30) was lower by 1% at the time of writing and the biggest drag on the index in today’s session was the Utilities Sector (-3.41%), while the only gaining sector was the Industrials Sector, up by 0.41%.
The trend since February is bullish, as price has been creating higher lows and higher highs since then. The most recent swing low of this bullish trend is last week’s low of 9739 and according to classic technical analysis, we should expect higher lows and higher highs to be formed as long as price trades above 9739. A short-term resistance level is yesterday’s high of 10,110 and is followed by the May 2 high of 10,156, while the next major resistance level on the daily chart is the April high of 10,490.
On the DAX 30 sliding below last week’s low of 9739, the trend would no longer be bullish according to classic technical analysis as the sequence of higher lows would end. Support levels below last week’s low of 9739 are the April 7 low of 9433 and the February 24 low of 9122.
The next German or European macroeconomic event, which may move the DAX is the release of tomorrow’s Eurozone Industrial Production figures, followed by first quarter German GDP on Friday.
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