16 Feb 2016
DAX technicals lose upward strength
European equities turned lower, with the German DAX falling 71 points to close at 9,135.11 on Tuesday, weighed by fading risk appetite and poor ZEW survey figures. The first was due to a sharp reversal in the recent oil's gains after worldwide producers failed to agree on an output cut. As for the second, the German sentiment indicator showed that confidence continued to erode among local business during this February.
DAX technical view
“The index gained further in electronic trading as Wall Street surged, but the daily chart shows that it currently stands below its daily high of 9,266, whilst the technical indicators have lost their upward strength, well below their mid-lines, suggesting the risk may turn back south”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have turned south, but remain well above their mid-lines, whilst the 20 SMA heads higher around 9,025. Should the benchmark fall below this latter, further declines should be expected, back towards this month low in the 8,690 region”.
Support levels: 9,112 9,025 8,966. Resistance levels: 9,266 9,334 9,418.
DAX technical view
“The index gained further in electronic trading as Wall Street surged, but the daily chart shows that it currently stands below its daily high of 9,266, whilst the technical indicators have lost their upward strength, well below their mid-lines, suggesting the risk may turn back south”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have turned south, but remain well above their mid-lines, whilst the 20 SMA heads higher around 9,025. Should the benchmark fall below this latter, further declines should be expected, back towards this month low in the 8,690 region”.
Support levels: 9,112 9,025 8,966. Resistance levels: 9,266 9,334 9,418.