European Markets fell into bearish territory after the German Index had fallen 20% since its January high and over 3% in its last session. The arrest of Huawei’s executive intensifies the clash between the US and China weighing on the DAX as export-driven automobile sectors fret over the two countries’ relations putting into question the outlook on future trade talks . Uncertainty over a plunging oil market as well as Brexit outcome builds on concerns over global growth. Investors can look to today’s Eurozone’s GDP report and Germany’s Industrial production report to impact the day ahead.
The outlook on the German Index remains bearish as negative momentum continues to build and the index slides down the lower band meeting a short term support at 10810. As the index persists on the downside and fails to edge above the 20 moving average, it could cross support at 10763 before making further declines and reaching another bottom.
Support: 10763 / 10660
Resistance: 11058 / 11182