DAX Hovers Below 10,000
The German DAX lost 1.94% or 192 points to end the day at 9,926.77,
following further declines in oil prices and renewed concerns over a
weakening global economy after China's manufacturing sector contracted
for a fourteenth month in-a-row.
Also, weighing in European
stocks' markets was a downgrade of EU's growth forecast coming from the
European Commission, precisely as a consequence of Chinese slowdown.
Leading the decline was Commerzbank, down 9.55% after reporting earnings
more than halved in the first quarter of the year, while Deutsche Bank
shed 6.27%. Auto-makers also suffered, as BMW also posted a decline in
its first-quarter operating profit, ending the day down 3.81%.
DAX technical perspective
“The
index is back below the 10,000 mark, and if the market doesn't manage
to regain it quickly, bulls will likely give up, resulting in a sharper
downward movement. In the daily chart, the benchmark is now below its 20
DMA and a few points above the 100 DMA, the immediate support at
9,891, while the technical indicators maintain their bearish slopes
after crossing below their mid-lines, in line with further declines,”
said Valeria Bednarik, chief analyst at FXStreet. “In
the 4 hours chart, technical readings are also biased lower, as the
indicators resumed their declines following a tepid upward correction
within negative territory.”
Support levels: 9,891 9,819 9,741 Resistance levels: 9,970 10,052 10,132.
