Most European averages moved higher on Friday, however the German DAX Index edged down by 0.2% on Brexit and growth worries. US stocks also succumbed to heavy selling pressure on Friday as the yield curve continued to flatten and the latest jobs report missed estimates, and therefore German markets are set for a weak start this morning. Looking ahead, traders will be closely watching Germany's October trade data set for release later today.
DAX finished the week -4.17% lower at 10788 breaking below the key support level at 11050 which will now most likely act as resistance going forward. Today the German index is set to decline further reaching another support level at 10650. The RSI, however, is indicating extreme oversold conditions signaling a potential change in momentum that could lead to a correction back up towards the resistance levels and the center of the bollinger bands.
Support: 10650 / 10520
Resistance: 11050 / 11182