The DAX 30 index surged to the highest since January 2018 on Friday following the US-China trade deal. But the index has come-off sharply from there. DAX is likely to trade sideways after the German Manufacturing PMI missed the estimates. Services PMI rose to 52.0, up from 51.7, matched expectations.
The nearest support bellow is H4 50 SMA and the middle line of the Bollinger Bands at the same chart. A breakout down that level could extend the further bearish pressure towards 12,923.20, the 78,6% Fibo retracement on the daily rally from 11,266.48 to 13,374.27. In that area is located also the lower boundary of H4 BBs. Underneath the support level at 12,650 should limit the sell-offs.
On upside, if the bulls could make recovery above the Friday's high at 13,423.41, further gains should continue to 13,505/525 (Oct. and Nov. 2017 highs). Obviously resistance at the all time high of 13,596.89 is then key to direction.
We prefer the bearish/consolidation scenario in near-term because of the negative Friday candle and therefore Stochastic is in its overbought area.
The nearest support bellow is H4 50 SMA and the middle line of the Bollinger Bands at the same chart. A breakout down that level could extend the further bearish pressure towards 12,923.20, the 78,6% Fibo retracement on the daily rally from 11,266.48 to 13,374.27. In that area is located also the lower boundary of H4 BBs. Underneath the support level at 12,650 should limit the sell-offs.
On upside, if the bulls could make recovery above the Friday's high at 13,423.41, further gains should continue to 13,505/525 (Oct. and Nov. 2017 highs). Obviously resistance at the all time high of 13,596.89 is then key to direction.
We prefer the bearish/consolidation scenario in near-term because of the negative Friday candle and therefore Stochastic is in its overbought area.
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