European Stocks Jump As Mood Music Improves
Fiona Cincotta March 31, 2020 8:03 AM
Dax to test 10150 as sentiment continues to improve?
After a stronger finish in Europe on Monday, European stocks have jumped higher on the open again today. The mood in the market is showing signs of improving despite mixed headlines. With equities markets now moving higher for 4 of the past 5 sessions investors are debating whether there are grounds for a sustained move higher.
The biggest cap on sentiment is owing to the amount of uncertainty still out there. We don’t know how long the lock downs will continue for and whether there will be a second wave of infections when restrictive measures are eased. Furthermore, we have no idea what state the global economy will be in when we come out the other side. These fears are likely to limit gains
Dax levels to watch
The Dax has jumped 1.5% on the open, trading around the key psychological level of 10000, the top end of its trading range. On the 4 hour chart the Dax trades above its 50 and 100 sma. A close above 10150 could see more bulls buy in.
Immediate support can be seen at 9779 (today’s low) prior to 9460 (100 sma) and 9350 (50 sma and low 29th March)
Immediate resistance can be seen at 10150 (high 25th March) prior to 10750 (high 11th March) and 11150 (200 sma).
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