A fourth consecutive negative close for the Dax, losing 118.1 points and closing at 1197.5, with Italian banks under heavy pressure as continued worries over a budget clash between Rome and the European Union contributed to a continued selloff in equities and a rise in bond yields. In economic releases, Eurozone Investor Confidence fell to 11.4 from 12 in September, vs. a forecast of 11.7. German Industrial production (MoM-Aug) slid to -0.3% vs. an estimate of +0.3% with a previous of -1.1%, while YoY figure came out as expected at -0.1%. Today, German Trade Balance figure for the month of August printed at 17.2b vs. a forecast and previous of 16.2b and 16.5b respectively
Strong bearish momentum on the DAX, as the index trades in a bearish parallel channel with a high negative slope. Momentum indicators on 1H chart are showing signs of market retracement. Bearish momentum will continue as long as our parallel channel is respected and price remains below 12000.
Support: 11940.1 11899 11852.3 11706.2
Resistance:.12052.7 12126.9 12172.7