2 May 2016
DAX holding above the 10,000 level
European stocks closed generally lower this Monday pressured by sliding oil prices, although the German DAX managed to add 85 points to end at 10,123.27, underpinned by a better-than-expected April manufacturing PMI in the country, up to 51.8 from 50.7, as new orders increased at the fastest pace in three months.
Auto makers edged higher, with Volkswagen adding 0.16%, and Daimler surging by 0.66%, although the banking sector remained under pressure.
Mario Draghi spoke at the Asian Development Bank's 49th Annual Meeting, in Frankfurt, and responded to latest German criticism, saying low borrowing costs were symptomatic of a glut in global savings for which Germany was partly to blame. Besides that, he added nothing new in regards of future economic policies to be applied by the ECB.
DAX technical view
“It is quite significant that the index has held above the 10,000 level, and bulls will likely remain encouraged. In the daily chart, the index bounced from a bullish 20 SMA, whilst the Momentum indicator keeps heading south within positive territory, but the RSI turned higher around 52,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is developing below a bearish 20 SMA, currently at 10,200, whilst the technical indicators aim slightly higher within bearish territory. The index needs to extend beyond this last, to be able to recover the bullish momentum seen mid April.”
Support levels: 10,062 10,000 9,948. Resistance levels: 10,132 10,200 10,290.
Auto makers edged higher, with Volkswagen adding 0.16%, and Daimler surging by 0.66%, although the banking sector remained under pressure.
Mario Draghi spoke at the Asian Development Bank's 49th Annual Meeting, in Frankfurt, and responded to latest German criticism, saying low borrowing costs were symptomatic of a glut in global savings for which Germany was partly to blame. Besides that, he added nothing new in regards of future economic policies to be applied by the ECB.
DAX technical view
“It is quite significant that the index has held above the 10,000 level, and bulls will likely remain encouraged. In the daily chart, the index bounced from a bullish 20 SMA, whilst the Momentum indicator keeps heading south within positive territory, but the RSI turned higher around 52,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is developing below a bearish 20 SMA, currently at 10,200, whilst the technical indicators aim slightly higher within bearish territory. The index needs to extend beyond this last, to be able to recover the bullish momentum seen mid April.”
Support levels: 10,062 10,000 9,948. Resistance levels: 10,132 10,200 10,290.