DAX INDEX REMAINS WEAK IN RALLY TOWARDS 14,000 LEVEL

Risk appetite increased with the loss of the effect of speculative purchases of some investors experienced in the last week with the new week in global markets. Thus, while the upward momentum in the US indexes gained momentum, the DAX index also turned upward with the partial linking of the vaccine supply process in Europe to dessert. Thus, we see that the index, which climbed above the 13.800 level, completed the day at the level of 13.933 with an increase of 0.71 percent.

While this positive image in global indices is supported by the increasing expectations for the US stimulus package, efforts are underway to have the package put into effect without the support of Republican Senators. While the Eurozone economy regressed by 0.7 percent in the 4th quarter, it is seen that positive households are on the agenda again in inflation. On the other hand, the German Government stated that the state of emergency could be extended until June at least, which was somewhat disturbing in terms of index increases. In addition, all member countries of the European Union (EU) have decided to request a negative Covid-19 test for all trips to the EU from third countries. While these developments triggered political tension on the German side, it seems that the index failed to some extent in its attacks against the 14,000 level.

If we look at the sectoral view of the DAX index, it is seen that the increases in the index are suppressed with the effect of the withdrawal in the real estate and basic consumption sectors. The discretionary consumption and communication sectors were among the best performances of the day.

It can be said that the DAX index maintaining its strong appearance above the 13,800 level, which it received from the previous 13,476 stretch, is quite determinant for the continuation of the upward trend. A new attack in the index can only be expected to enter into a new record attack movement with 14,400 resistance above the level of 14,100. On the other hand, due to the weakness of the mobility above the 13.800 level, the decreases below the 13.476 support can be expected to accelerate within the framework of the 13.225 support.