FxWirePro: DAX upside capped by trend line resistance, good to sell on rallies

DAX has halted its 10 days of winning streak. The index hits high of 12025 and lost nearly 100 points from the high. The slight decline is due to profit booking.DAX was in bullish phase after a massive 330 points sell-off from major top 13601 made on Jan 23rd 2019. The index has halted its major weakness on Dec 27th and jumped nearly 1800 points. The jump was mainly due to strong US markets and easing US-China trade tensions. US has proposed tariffs to EU goods worth USD11bn. It has increased fears of trade war between US and EU. Markets eye ECB monetary policy meeting tomorrow for further direction. Investors expect ECB to be more dovish and there will not be much changes in policy.The index hits high of 12035 and is currently trading around 11955.

Technically, index is facing major trend line resistance around 12100 (trend line joining 13601 and 13202) and any break above will take the index to next level till 12353 (61.8% fib)/12600/12800.

On the lower side, near term support is around 11797 (300- day EMA)11600 (200- day MA). Any close below 11600 confirms further weakness and a decline till 11400/11270 is possible.

Momentum indicator RSI shows slightly overbought (above 70) and this shows minor weakness till 11400 is likely.

It is good to sell on rallies around 12000-025 with SL around 12200 for the TP of 11400/11290.