DAX Xetra (cash index)
The bulls remain under enormous pressure as the negative candles continue to rack up and any hint of intraday gains are sold into.
There have now been nine daily candlesticks in a row which have been bearish within the session, meaning that the close has been below the open.
This reflects the lack of any positivity in the market right now and means that any intraday strength remains a chance to sell.
The breakdown below 11,009 has taken the DAX to a new two year low and continues the downside that now targets potentially as low as 10,150.
The market has gapped lower at the open today and this means that resistance is initially at 10,788 (which was also Friday’s close).
- There is an old trading band between 10,175/10,800 which the market is now in, with the next real support at 10,400.
Momentum is negative but with the RSI around 30 this could potentially limit immediate downside.
- However, any move into the band of overhead supply now 10,788/11,000 should be seen as a selling opportunity.