The DAX index posted a sharp loss of 2.26% on Thursday as rising concerns over the global and European economy reaches new heights. News that the US and China may not meet before their March 1st deadline raised concerns over the consequential trade deal that has already seen little progress. The European Commission cut its growth forecast highlighting China’s slowdown. Moreover, Germany reported a decline of 0.4% in industrial production, adding to the nation’s list of weakening economic indicators. A release of December’s trade balance report today might impact trading in German stocks.
The DAX index made a steep decline to close at 11,022 on Thursday. The daily RSI fell below the 50 midline for the first time this year indicating the Index has entered negative territory while price is looking to test the 50-day MA at 10990. Bearish momentum will keep the DAX drifting lower with its next target of support at 10890 while price remains below the 11,000 level.
Support: 10890/ 10790
Resistance: 11000/ 11050