DAX upside still limited - FXStreet

European equities closed generally higher, despite a sharp decline in mining-related stocks, with the German DAX adding 111 points to close at 9,980.49, supported by better-than-expected local data. Deutsche Telekom was among the best performers, up by 2.93%, with telecoms and pharmaceuticals generally higher.

DAX technical outlook

“The daily chart shows that the index advanced intraday up to 10,065 before retreating, now standing around its close ahead of the Asian opening. The same chart shows that the index met buying interest around its 100 DMA, a major support now around 9,870, but also that the technical indicators remain within negative territory, suggesting the upside is still limited,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is hovering below its 100 SMA and above a bearish 20 SMA, while the technical indicators have settled within positive territory, lacking directional strength at the time being.”

Support levels: 9,951 9,889 9,790. Resistance levels: 10,065 10,138 10,204.