DAX INDEX: RALLY IS PROBABLY NOT OVER
US President Joe Biden's $ 1.9 trillion support package proposal has not yet found support from Republicans, while weakening the risk appetite in the markets, while the increasing uneasiness in the business world in Germany triggered the image with sellers, albeit partially on the index side. While the ifo business index in Germany weakened with 90.1 compared to the previous month, the institution drew attention to the increase in uncertainties regarding the German economy. It was pointed out that especially with a second wave in the Covid-19 epidemic, optimism about the economy weakened.
The IMF, on the other hand, revised its growth expectation for the German economy downwards with 3.5 percent for 2021, while the growth expectation for 2022 was kept constant at 3.1 percent. In Germany, GFK industry confidence index performed worse than expected with minus 15.6 in February. German Chancellor Merkel underlined that the impact of the epidemic on our lives will continue in the coming months and years.
In the wake of these developments, with the increasing uneasiness about the German economy, the index, which stretched the critical 13.800 support, again attacks against 14.000 resistance, but it did not succeed. Especially in the downward scenario, we follow the closings below 13.800 level within the framework of 13.476 and 13.225 support. It is critical for the index to maintain its appearance above 13,800 level. In this context, the index can be expected to accelerate its rise with resistance levels of 14,100 and 14,400.