DAX Xetra (cash index)
Another bearish breakdown on the DAX this morning as the negative outlook continues to drag equities lower.
- A move below the previous December low at 10,585 continues the bear move towards the long term target at 10,150 from the huge top pattern.
- The next support comes in at 10,400.
Momentum indicators remain negatively configured as the MACD and Stochastics slip ever further into bearish positioning, whilst the RSI is falling but still a shade above 30 suggesting there is still downside potential.
- There is a gap still open at 10,750 whilst the reaction low at 10,700 from earlier in the week means that there is a band of resistance overhead at 10,700/10,750.
- Initial resistance is 10,585 (all but today’s traded high too) and yesterday’s reaction high at 10,686.