The Market Movers It was a bullish day for the auto sector. Continental surged by 4.27%, with Mercedes-Benz Group and BMW seeing gains of 1.69% and 1.
The Market Movers
It was a bullish day for the auto sector. Continental surged by 4.27%, with Mercedes-Benz Group and BMW seeing gains of 1.69% and 1.63%, respectively. Volkswagen and Porsche also found support, rising by 1.37% and 1.00%, respectively.
However, it was a mixed session for the banks. Commerzbank slipped by 0.08%, while Deutsche Bank ended the day with a 0.42% gain.
The Day Ahead for the DAX
It is a quiet day on the European economic calendar, with no euro area economic indicators to provide direction.
There are also no US economic indicators to influence the afternoon, leaving central bank chatter and news from Washington to provide direction.
News from the weekend of US President Joe Biden and Speaker of the House Kevin McCarthy reaching a debt ceiling deal should deliver support.
DAX Technical Indicators
Resistance & Support Levels
The DAX has to avoid the 15,907 pivot to target the First Major Resistance Level (R1) at 16,086. A move through the Friday high of 16,009 would send a bullish signal. However, the DAX would need central bank chatter and debt ceiling news support a breakout.
In the case of an extended rally, the bulls will likely test the Second Major Resistance Level (R2) at 16,189. The Third Major Resistance Level (R3) sits at 16,471.
A fall through the pivot would bring the First Major Support Level (S1) at 15,804 into play. However, barring another risk-off-fueled sell-off, the DAX should avoid sub-15,750 and the Second Major Support Level (S2) at 15,625. The Third Major Support Level (S3) sits at 15,343.
Looking at the EMAs and the 4-hourly chart, the EMAs sent bullish signals. The DAX sat above the 50-day EMA (15,955). The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
A hold above the 50-day EMA (15,955) would support a breakout from R1 (16,086) to target R2 (16,189). However, a fall through the 50-day EMA (15,955) would bring the 100-day EMA (15,848) and S1 (15,804) into view. A fall through the 50-day EMA would send a bearish signal.
The DAX Futures Sees Green
Looking at the futures markets, DAX was up 24 points, with the NASDAQ and Dow up 72 and 76 points, respectively.
For a look at the economic events, check out our economic calendar.
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