The German DAX may open on a mixed note on Monday as today marks the deadline for Rome to reply to the European Commission's criticism of its budget proposal. Chinese markets jumped the most in more than two years earlier this morning following soothing comments from top officials about the health of the economy, and this might also affect European bourses. The European markets fluctuated on Friday before ending mixed as third-quarter earnings proved to be a mixed bag. The European Central Bank will announce its interest rate decision on Thursday, with economists expecting no change in monetary policy.
After trading down to almost the key technical support at 11460 earlier during the day, the market bounced off slightly and the upside seem to continue today as we approach the 200-period MA. The failure to close below the support might increase that level's significance as support going forward. The trend is clearly bearish, however, showing an intact downtrend in the short and medium term.
Support: 11460 10785
Resistance: 11815 11900