DAX Continues To Fall As Contagion Risks Impact
Hantec Markets | Aug 14, 2018 06:58
DAX Xetra (cash index)
Selling pressure through European equities have really hit the DAX and the outlook has shifted significantly in the past couple of sessions.
A huge bear candle on Friday and further weakness today has broken through a series of key support at not only 12,493 but also now 12,400.
This comes with momentum indicators increasingly corrective as RSI falls below 40, MACD lines accelerate lower following a cross sell signal and the Stochastics gaining downside traction.
- There is a gap open at 12,390 which needs filling but that means that the 12,400/12,493 range now becomes a key basis of overhead supply and resistance.
Another lower high under here would be a selling opportunity.
- Breaking the 12,400 support effectively opens 12,104 as the next key support (June low).
Although this is clearly a volatile time on equities, but rallies are now a chance to sell as the technical suggest further downside potential.
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