DAX continues to move up, it is currently trading above its 20-Day EMA and there is a very clear trend which can be seen on daily charts. DAX is expected to face resistance near 9,887 levels in near term as seen on the charts. However, momentum indicators suggests that the up-move would continue.
The German benchmark index DAX saw a steady 0.11 percent spurt at the Frankfurt Stock Exchange yesterday and ended up crossing the 9,700 points threshold, even as investors came to terms with the European Central Bank’s decision last week to cut down base interest rates and introduced a watered down stimulus package, in spite of stiff opposition from the German board members.
On the back of last week interest rate cut announcement, the DAX index had seen a very tepid market response, resulting in an 11.01 points increase. German financial market analysts had opined at that time that, “investors are accustomed to the cheap money provided by the ECB” and hence the market euphoria about the rate cuts did not translate to more money pouring into the stock market.
In yesterday’s week beginning trading, the health care provider Fresenius SE & Co. KGaA was the top performer, by clocking a 1.87 percent increase. The other notable market performers were software technology giant SAP SE which posted a healthy 1.17 percent increase and Fresenius Medical Care AG & Co., which was up by nearly 1.11 percent. The other two market performers were Deutsche Lufthansa AG and Commerzbank AG whose stock price was up 1.1 percent and 1.03 percent respectively. The notable drags on the DAX index yesterday were BASF SE which was down 0.78 percent followed by other market leaders like E.ON AG and Siemens AG which were down by 0.42 percent, 0.39 percent respectively. Car maker Daimler AG was also down by 0.42 percent.
Buy DAX above 9,768 with a stoploss of 9,750 for a target of 9,810 or 9,850.