IS GERMANY'S DAX INDEX WAITING FOR NEW RECORDS?
Increasing inflation concerns in the USA weakened the purchases of the overall indices somewhat, while the DAX index paused its increases with the mixed appearance of the global indices. While the ZEW Economic Confidence Index in Germany is slightly below the expectations with a monthly rate of 70.7, increasing the tension on the index side, the Council of Ministers in Germany announced that it has approved the draft law on the hardening of the Covid-19 measures. With the preservation of the uneasiness regarding the Covid-19 outbreak, we see that the DAX index completed the day at the level of 15,209 with a limited decrease of 0.17 percent. According to the ZEW report, it was stated that the export outlook in the country was better compared to the previous month, while it was noted that the indicator fell for the first time since November 2020.
German Chancellor Merkel stated that the vaccination campaign has gained momentum in Germany and made a statement that they are close to the light at the end of the tunnel. The suspension of the delivery of J&J vaccine to Europe due to blood clotting was another development that worries the markets. In addition, the downward revision of growth expectations for the German economy by important institutions was another factor that increased risk perception in the markets. In the sectoral view of the DAX index, we see that the infrastructure sector is the weakest performing sector of the day with a decrease of 1.5 %.
When we look at the DAX index technically, it can be expected to preserve the bullish scenario due to the record rising movement and settling above the 15.200 level. Above this level, we follow the resistance levels of 15,500 and 15,800 within the scope of another buying points. However, in a possible downward realization, it is worth paying attention to the closing of the index below the 15.100 level. This below-level outlook could open the way for dips to reach the 14,750 and 14,400 support levels.