Tuesday, September 4, 2018

DAX30 - 05 September 2018


Fundamental Highlights

German shares are set to open lower on Wednesday amid emerging market worries as South Africa slipped into a recession for the first time since 2009 and Turkey reported its highest inflation rate in 15 years. Asian stock markets fell broadly to extend recent losses amid fears of a Chinese slowdown and economic turbulence in emerging market. The DAX30 ended Tuesday's session firmly in the red, as investors remained anxious about the trade tensions between Washington and its key trading partners. On the economic calendar today are retail sales from the Eurozone at 1300 UTC+3 and PMI readings from Germany and France.

Technical Analysis

From a technical perspective, the DAX dropped strongly yesterday out of the consolidation zone and is now targeting the €12,125 support barrier. In the short-term, the market could maintain declines if the RSI keeps losing momentum below the 50 level. The €12,125 is an important support level on the 4-hour chart, and chances are the index will bounce back from it, however if the price continues to slip lower, the next support is the 6-month low at €11,970. On the flip side, upside moves are likely to find resistance in the €12,250 to €12,320 area.

Support: 12125 11970
Resistance: 12250 12320

Chart (H1)