News & analysis
News & analysis

DAX cools after higher-than-expected inflation, but technically it still looks bullish.

31 August 2023 By Ryan Boyd

Share

The DAX cooled off in yesterday’s session off the back of higher-than-expected German inflation data.
With analysis expecting the Year-on-Year rate to fall to 6%, the actual number was higher at 6.2%. This has raised some concerns over the fight against inflation in Germany, putting an end to the three-day green streak for the DAX.

Technically, price bounced nicely off the support zone around 15,500-15,600. This level has acted as both a key area of resistance and support in the past 6 months.
Since the first breakout above that zone in March, price has been ranging sideways ever since. Multiple attempts to break and hold above the January 2022 high have failed, and the recent sell-off coincided nicely at the mid-range level.

From a purely support and resistance technical view, there are two scenarios that could occur. The first would be a fall back down to the key support level around 15,600. The second could be a positive catalyst news even that kicks price through the mid-range resistance level and back up towards the January 2022 high for a 4th attempt at breaking through.

Since the recent low 2 weeks ago, the price action formed a more bullish market structure on the lower timeframes. We’ve seen a clean higher high and higher low. While this bullish structure holds, bulls could remain in control.

Ready to start trading?

The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.

#Indice #Indices #IndicesTrading #IndexTrading #Shares #Stockmarket #Stocks