The German DAX index rose as oil prices and bond yields fell, offsetting weak economic data
The DAX from an economic perspective
The German market posted notable gains this Tuesday morning thanks to a sharp drop in crude oil prices and eurozone bond yields.
The DAX index is now trading near 25,450 points This rise was driven by gains in certain stocks, with Merck shares climbing nearly 4%.
Kyagen shares rose 3.6%, while Saab and Bayer shares rose 2.7% and 2.5%, respectively.
Shares of Adidas, Commerzbank, Henkel, Siemens Healthineers, and Continental also rose by between 1.5% and 1.8%.
In contrast, shares of GEA Group, Semerise, Vonovia, Siemens, Hochteuf, BASF, Fresenius, and Deutsche Bank rose by about 1%.
Data released by the German Federal Statistical Office showed a sharp decline in German factory orders during August, primarily due to a drop in the production of transportation equipment.
Factory orders fell by 10.6% compared to the previous month, in contrast to a 3.2% increase in July. Orders had been expected to decline by 0.9%.
The DAX from a technical perspective
rose today near the upper boundary of the descending price channel, reaching a high of approximately 25,500.
It faces resistance at the upper boundary of this channel, which could push the DAX into some corrections near the 25,200 level and then the 25,000-point level, with strong resistance near the 25,630-point level.
We are currently waiting to see if the 25,630 level is broken to the upside with a close on at least a 4-hour candle, if so, it may be worth considering a buy to target 25,750 as an initial target, followed by 26,100, and finally the 26,600-point peak.
