DAX eyes 10,000 level

By FXStreet The German DAX added 226 points or 2.34% to end the day at 9,717.16, being the best performer among European equities. The index was supported by automakers, with BMW adding 4.2% after its chief executive officer forecast another year of record sales, and Daimler which advanced 2.5%.

Also, improved employment data in the country, and a better-than-expected Markit Manufacturing PMI, supported the benchmark.

DAX technical outlook

“The rally extended further following Wall Street’s gains, leaving a clearly bullish tone in the daily chart, as the index has accelerated well above its 20 SMA, while the technical indicators head sharply higher well into positive territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA is advancing above the 100 SMA, although with limited strength, whilst the technical indicators are turning slightly lower near overbought territory, still far from suggesting that the index may change course. The DAX has its next relevant resistance at 9,924, January 27th intraday high, which means some follow-through beyond it will support a continued advance up to 10,000.”

Support levels: 9,651 9,580 9,5212. Resistance levels: 9,847 9,924 10,000.
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Source:: FX Street