13 Apr 2016
DAX upside favored - FXStreet
European stocks extended their winning streak to a fourth consecutive session, as Chinese strong trade balance figures reduced fears of a continued global economic slowdown. The German DAX soared to close the day at 10,026.10, up by 271 points, underpinned by the strong positive mood among local investors, and in spite of tepid EU industrial production data.
According to official data, EU Industrial Production, declined by -0.8% MoM vs. the -0.7% expected, while year-on-year the Industrial Production rose by 0.8% against the 1.3% expected.
DAX technical view
“Back above 10,000, the daily chart shows that the index is currently aiming to advance beyond its 100 DMA, having been below it since January 4th. Also, and in the same chart, the technical indicators are crossing their mid-lines towards the upside, all of which increases chances of a stronger advance, particularly on an upward acceleration beyond 10,118, March high,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators have lost upward strength near oversold territory, with only the Momentum retreating at the time being. All in one, the upside is favored, although failure to sustain gains above the 10,000 figure could imply a strong downward move during the upcoming weeks.
Support levels: 9,996 9,918 9,834. Resistance levels: 10,042 10,118 10,196.
According to official data, EU Industrial Production, declined by -0.8% MoM vs. the -0.7% expected, while year-on-year the Industrial Production rose by 0.8% against the 1.3% expected.
DAX technical view
“Back above 10,000, the daily chart shows that the index is currently aiming to advance beyond its 100 DMA, having been below it since January 4th. Also, and in the same chart, the technical indicators are crossing their mid-lines towards the upside, all of which increases chances of a stronger advance, particularly on an upward acceleration beyond 10,118, March high,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators have lost upward strength near oversold territory, with only the Momentum retreating at the time being. All in one, the upside is favored, although failure to sustain gains above the 10,000 figure could imply a strong downward move during the upcoming weeks.
Support levels: 9,996 9,918 9,834. Resistance levels: 10,042 10,118 10,196.