DAX Xetra (cash index)
As the market remains under pressure today, the DAX stands on the brink of a significant downside break.
Donal Trump’s protectionist moves have driven eh market sharply lower in recent days and to close below 12,000 was a key break on Friday.
However the huge level to watch is 11,869 which was the August 2017 low which would mark the completion of a huge top pattern if broken on a closing basis.
The market has breached the support early this morning but there is clearly some fight left in the bulls as they have bought the move.
However a failure of this support on a closing basis would be huge.
So far the daily chart shows a strong bull candle as the gap lower at the open has been decisively filled, but consistent closing levels below 12,003 (February’s low) would maintain the negative shift in sentiment.
- There is though still a gap open at 12,143 which needs to be filled.
The hourly chart shows the market looking to unwind oversold near term momentum and that it is far too early to suggest there is any decisive buying in the market that can forge some sustainable support.
- A close above 12,003 would certainly help though today.
- Today’s low at 11,830 is support.