28 Oct 2014
DAX opens above a key resistance
FXStreet (Mumbai) - The German equity index, Dax, has opened above the critical technical level of 8903, after having closed just below the same yesterday.
The Dax is trading 1.04% higher at 8995.80 levels. The index breadth is positive with an advance decline ratio of 30:0. Among the index stocks, Deutsche Telekom, Deutsche Boerse, K&S, and Heildelbergcement have gained more than 2% each. The strength in the German equities has pushed up the Ten-year Bund yield to 0.878%, up from the yesterday’s low of 0.861%.
Moreover, the equity prices recovered yesterday after reports came-in that the European Central Bank (ECB) spent 1.704 billion euros last week on covered bonds under a new purchase program. However, analysts say that the ECB will not get anywhere near the 600-billion-euro mark, if it continues to purchase at the same rate in the future.
Dax Technical levels
The index has an immediate support of 8903 (Aug. 8 low), under which the prices can fall to 8837 levels. Meanwhile, the index can extend its gains today to 9131 levels, if the immediate resistance of 9084 is taken out.
The Dax is trading 1.04% higher at 8995.80 levels. The index breadth is positive with an advance decline ratio of 30:0. Among the index stocks, Deutsche Telekom, Deutsche Boerse, K&S, and Heildelbergcement have gained more than 2% each. The strength in the German equities has pushed up the Ten-year Bund yield to 0.878%, up from the yesterday’s low of 0.861%.
Moreover, the equity prices recovered yesterday after reports came-in that the European Central Bank (ECB) spent 1.704 billion euros last week on covered bonds under a new purchase program. However, analysts say that the ECB will not get anywhere near the 600-billion-euro mark, if it continues to purchase at the same rate in the future.
Dax Technical levels
The index has an immediate support of 8903 (Aug. 8 low), under which the prices can fall to 8837 levels. Meanwhile, the index can extend its gains today to 9131 levels, if the immediate resistance of 9084 is taken out.