DAX Xetra (cash index)
Negativity on Eurozone equities is sizable now and the DAX is still under huge pressure despite an early rebound today.
The fact that the number of negative candlesticks in a row (i.e. close below the open) is now up to ten consecutive just reflects the persistent bearishness that has engulfed the DAX now.
Breaking below 11,000 and subsequently 10,800 opens the way towards the long term downside target at 10,150.
- Next support is at 10,400 before an old range low from 2016 at 10,175.
- Rallies have to be seen as a chance to sell still, with 100,800/11,000 a band of resistance.
Perhaps the momentum indicators will give the bulls some hope, as there could be a technical rally as the RSI has hit 30 again and looked to bottom.
This has happened four times since September and given the huge precipitous sell off recently, opens for some sort of rebound on a near term basis.
It would be very difficult to see this changing the terrible outlook for the bulls though.
- Support is initially at yesterday’s low at 10,585.