DAX40 PERF INDEX - German DAX30 Hit 21-Month High - 01/16/2017 (GMT)

German DAX 30 is losing some ground since yesterday’s trading session as it fell more than 0.7%. Over the last week, the index recorded a fresh 21-month high at 11695, however, after that, the price plunged to 11480 support barrier.

From the technical point of view, the indicators are confirming the recent bearish movement as maybe is the time for a retracement to the downside. It seems that the bulls have run out of strength while the DAX will continue its attempts to break the 11480 level. A successful penetration of the support zone at 11390 - 11480, it would open the way for the index to hit the 11130 handle which overlaps with the 50-daily SMA. On the other side, a break above the new high will expose the index until the 11800 resistance barrier. On the daily chart, the Relative Strength Index (RSI) dropped below the overbought territory and the MACD oscillator fell below its trigger line.