DAX40 PERF INDEX - German DAX plunges below 11,620 - 04/30/2015 (GMT)
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DAX40 PERF INDEX Chart
The German DAX 30 index has been looking weak over the last couple of days, following three consecutive winning months. The DAX index closed 9.06% in January, 6.61% in February and added 4.95% the last month.
Few hours away from the European closing, the DAX index is currently trading in negative territory for April (4.32%), following some mixed German data, including Retail Sales and Unemployment rate. Germany's unemployment rate dropped to 6.5 percent in April, while Retail Sales in March saw their biggest monthly drop since the end of 2013.
The index plunged below the strong support level of 11620 from a high of 12385, following the short-term retracement which took place above the 11620 level. Currently, the German index is finding support, temporary at least, around the 11450 level, which includes the 23.6% Fibonacci level. Slightly below that area, the psychological key level of 11000 is ready to provide a significant support to the index, as well as the ascending trend line, in case of a further fall.
Therefore, if the aforementioned levels hold as resistances, then buyers have to regain the retracement zone above these levels in order to put the market in a strong position once again.
On the other hand, if we see some more selling pressure in the near term, I would expect the bears to drive the action towards the key support level at 10590, slightly above the 50% Fibonacci retracement level. This will be a key level for the index, with a break below suggesting that the market remains more bearish in the German index.
Few hours away from the European closing, the DAX index is currently trading in negative territory for April (4.32%), following some mixed German data, including Retail Sales and Unemployment rate. Germany's unemployment rate dropped to 6.5 percent in April, while Retail Sales in March saw their biggest monthly drop since the end of 2013.
The index plunged below the strong support level of 11620 from a high of 12385, following the short-term retracement which took place above the 11620 level. Currently, the German index is finding support, temporary at least, around the 11450 level, which includes the 23.6% Fibonacci level. Slightly below that area, the psychological key level of 11000 is ready to provide a significant support to the index, as well as the ascending trend line, in case of a further fall.
Therefore, if the aforementioned levels hold as resistances, then buyers have to regain the retracement zone above these levels in order to put the market in a strong position once again.
On the other hand, if we see some more selling pressure in the near term, I would expect the bears to drive the action towards the key support level at 10590, slightly above the 50% Fibonacci retracement level. This will be a key level for the index, with a break below suggesting that the market remains more bearish in the German index.
This member did not declare if he had a position on this financial instrument or a related financial instrument.
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