DAX 30 UP ON GLOBAL EQUITY RECOVERY DESPITE WEAK DATA
DAX 30 futures are currently trading at 11264-higher by 2.2% as compared to the last closing. However, the index futures had closed in negative territory in the last trading session. In the cash markets, DAX 30 is currently trading higher about 1% after hitting its lowest level (11078) since Dec. 8, 2016 earlier in the session. The index has rebounded with gains on Thursday, after three straight losing sessions.
In news related to earnings in Europe and America, DAX 30 member Continental’s finance chief said at an interview that the company expects to report a decline in third-quarter adjusted operating profit to around 770 million euros from 1.09 billion euros. However, the stock was trading in positive territory.
Volkswagen was up 2.6% after reports that it is planning a multi-billion euros investment to produce battery cells with South Korea’s SK Innovation and is exploring a European partnership in the area of mobility services with Waymo.
Other top gainers in the DAX 30 include- Henkel (up 1.07%), Fresenius (up 0.7%) and Beiersdorf (up 1.03%) at the time of writing.
On the data front, the German Ifo Business Climate Index released earlier dipped to 102.8, a 3-month low. The index missed the market estimate of 103.1.
On the technical front, the RSI is currently at 33.92% and suggests that the market can move in the upward direction. The current price is below the MA5. The Current Price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Limit Buy at 11200. Take Profit at 11350. Stop Loss at 11130.