GER30, Daily
The DAX (GER30) sell off accelerates as index dips below 12000 mark. The sell off in the German DAX accelerated after the index broke the key 12000 mark. The last time the DAX dipped this low was in August last year and if the index settles below the low of 11868.84 from August 29, 2016, the medium term uptrend will be broken and the door open to further losses. As of 12:00 GMT the DAX was down -2.2% at 11912.00, with the German index leading a broader sell off in European stocks that saw the CAC 40 losing -1.86% so far, the Euro Stoxx 50 -1.76% and the FTSE 100 -1.00%. This followed a broad sell off in Asia, where Nikkei and Topix closed with losses of 2.50% and -1.83% respectively. Trade war jitters and Trump’s warning that imported steel and aluminium are facing tariffs of 25% and 10% respectively have triggered the latest move lower in global equities, with a weaker dollar adding pressure on exports across Asia and Europe.
Technically, the next stop lower could be 11,830 and the the weekly support at 11580. MACD and RSI remain weak (although approaching oversold) and the Parabolic SAR has also turned negative again following a period of consolidation.
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Stuart Cowell
Senior Market Analyst
HotForex
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