Dramatic Slump in DAX – US-China Trade War Plays

Posted Monday, May 6, 2019 by
Arslan Butt • 1 min read

During the European session, the DAX index has fallen dramatically on Risk-off sentiment. Currently, the DAX is at 12,168, down 1.98% on the day.

German services PMI grew to 55.7, just beyond the forecast of 55.6. This noted the strongest figure since September. The Eurozone release dropped to 52.8, but still beat the forecast of 52.5. Eurozone Sentix Investor Confidence jumped to 5.3, well above the estimate of 1.1. Retail sales also stalled at 0.0%, but it was above the forecast of -0.1%. Anyhow, the sentiment of raising tariffs hit the stock markets really hard.

Technically, the German Index has formed a doji and bullish engulfing patterns right next to each other and above 12,160 support. Dax has the potential to cover the gap on the violation of 12,200 resistance, and it may continue trading bullish until 12,345 target level today.

Support Resistance
12372.93 12509.13
12283.17 12555.57
12146.97 12691.77
Key Trading Level: 12419.37

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