The German index Dax 30 and other Euro stock indices retreated lower in April, but it seems like the retreat is over and they are already up and running in May. The price trended downwards in the first half of April and has since been range-bound, oscillating between the 50-day Simple Moving Average (SMA) at the lower end and the 20-day SMA at the upper end, which acted as resistance in April.

With the recent breakthrough above the 20-day moving average, buyers are eyeing last month’s peak. The Federal Reserve’s dovish stance on Wednesday evening failed to provide significant support, and disappointing non-farm payroll (NFP) data further incentivized movement in the stock market.

DAX Chart Daily – The Price Has Bounce Off the 50 SMA

The 30-day chart of the DAX indicates a bullish trend in the market. The price has moved above the moving averages (MAs) and has recently found support twice at the 50 SMA (yellow). The recent candlesticks show positive momentum, suggesting the potential for a new record high in the near future if the current trend persists.

Mixed Signals from German Economy

The recent announcement of Germany’s trade balance showed a positive surprise, with exports rising by 0.9% compared to the previous month, surpassing the expected increase of 0.4%. However, the decline in German factory orders in April garnered less attention, as retail sales tend to have a more significant impact on the stock market due to their reflection of the underlying structure of the German economy.

The recent announcement of Germany’s trade balance showed a positive surprise, with exports rising by 0.9% compared to the previous month, surpassing the expected increase of 0.4%. However, the decline in German factory orders in April garnered less attention, as retail sales tend to have a more significant impact on the stock market due to their reflection of the underlying structure of the German economy. German industrial orders for March fell short of expectations, recording a month-on-month decline of 0.4%, contrary to the anticipated increase of 0.4%. However, for April, industrial orders rebounded slightly, with a month-on-month growth of 0.2%.

German Index DAX 30 Live Chart