Increased Risk-Appetite Leading DAX 30 Higher –

Talking Points

The DAX 30 gains as global risk-appetite increases
following Warren Buffett’s Berkshire Hathaway add ing 9.8
million Apple shares to its portfolio.

From a technical point of view, the DAX 30 is bullish above
the May 6 low of 9739, but price is also capped by the May 10
high of 10,111.

Eurozone Trade Balance surplus increased to €22.3b.

U.S. CPI and Industrial Production are on deck this

The DAX 30 (CFD: GER30) was up by 1.56% at the time of writing
from Friday’s close price. All sectors were higher on the day,
but Materials, Information Technology and Telecommunication
Sectors were in the lead. The overall bias was bullish for the
European stock markets which where all higher. The business press
says the boost to Apple Inc’s share price following the
disclosure of Warren Buffett buying 9.8 million shares is what
has triggered a boost to risk-appetite.

From a technical point of view, the DAX 30 is bullish above
the May 6 low of 9739 as it is the most recent swing low of the
series of higher swing lows formed since February. The sequence
of higher lows is 8696, 9122, 9433, and 9739.

While the trend is bullish since February, the DAX 30 has been
trapped between the May 6 low of 9739 and the May 10 high of
10,111 for more than a week, leaving the short-term trend neutral
until a break to this range occurs. Resistance levels above the
May 10 high of 10,111 are the April 29 high of 10,254 and this is
followed by the April 21 high of 10,490. Support levels below the
May 6 low of 9739 are the psychological level of 9500, followed
by the April 7 low of 9433.

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DAX 30 | CFD: GER30

Created with
Marketscope/Trading Station II

; prepared by Alejandro Zambrano

The seasonally adjusted Eurozone Trade Balance surplus
increased to €22.3b, which was higher than €20.2b prior and the
€22b expected as per a Bloomberg News poll. While the Eurozone
Trade Balance has steadily gained from being negative in 2011,
the surplus has lingered around current levels since early 2015.
The DAX 30 reacted by trading slightly lower right after the
report was published. Since last year German Exports are higher
by 1%, while Imports have increased by 0%.

This afternoon U.S. Consumer Price Index may rebound to the
annualized 1.1% in April, while Core CPI may decline to 2.1% YoY
from the 2.2% as per a Bloomberg News poll. The outcome may
affect U.S. monetary policy and hence the mood of global stock
markets. For more on this please read ‘
EUR/USD to Mount Larger Rebound on Slowing U.S.
Core CPI

,’ by David Song, DailyFX Currency Analyst. U.S. Industrial
production is also on deck.

— Written by Alejandro Zambrano, Market Analyst for

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