The German DAX retreated before the European central bank meeting scheduled for today as traders would be closely looking at whether the ECB Chairman Mario Draghi pushes the easing button in the form of bond buying purchases program to stimulate the global economy. Many traders and investors believe that this move would be positive for equities in the medium term.
Yesterday DAX closed higher on the back of news that Russia and Ukraine had reached a ceasefire agreement which ease the tensions between the two nations. Traders also believe that the ceasefire agreement if followed, would mean that Russia might not be hit with further sanctions which might affect the growth in the eurozone.
On the daily charts for DAX 30, the index opened higher and was able to breach the resistance at its 100 day moving average but was unable to close above the upper end of the Bollinger band. The momentum indicator for DAX currently still trades in the bearish territory but does have a bullish bias which is confirmed by the strong uptrend the index has witnessed post hitting intraday lows of 8,092 just a couple of weeks back. Traders believe only a close below 9,376 would be first signs of the end of this current uptrend.
Short DAX if it closes below 9,376 with a short term target of 9,100 with a strict stop loss at 9,750.
Long DAX if it closes above 9,680 with a short term target at 9,900 with a strict stop loss at 9,376.