On Monday 9:55AM CET, German PMI readings were released and 5 minutes later the same readings for the monetary union. Booth of them were higher than market expected and became the direct cause of DAX noticeable increases.
DAX had risen up from a downward flag, which technically usually means a continuation of the earlier momentum. Demand side, unfortunately, does not have an easy task. Poor Wall Street behavior, Chinese market slump and corrective EUR/USD may block further DAX increases.
Yesterday, all of the German indices gained: DAX +1,19% (11443 pkt), MDAX +1,76% (21130 pkt), TECDAX +1,84% (1803 pkt), SDAX +1,63% (9106 pkt). 24 companies from main index (DAX30) ended the session in the green – Fresenius SE +4.12% became the biggest gainer.
During the flag breakout, price was also able to close the downward gap from July 27th. The most likely short-term DAX30 target might be found near 11600pts. and then near 11800pts. However 11500.00 level shows downward Gartley pattern (H1 chart) which may cause some troubles for market bulls.
