DAX Consolidates Near Lows

DAX Consolidates Near Lows

6 May 2016, 05:53
Roberto Jacobs

DAX Consolidates Near Lows

European stocks were buoyed on oil's advance, although a holiday in Germany kept action around the DAX limited. The index ended the day 23 points higher at 9.851.86, after posting a fresh weekly low of 9,790, but the absence of local macro data and corporate news added to the diminished volume.

DAX technical perspective

“The index retreated in after-hours trading, and the daily chart shows that it was unable to recover above a bearish 100 DMA, currently at 9,873, whilst the technical indicators remain within negative territory, but losing previous bearish strength,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart, shows that the index has been consolidating near its recent lows, capped by the 200 SMA and with the 20 SMA heading sharply lower above it, increasing chances of further declines. The technical indicators in the mentioned time frame have lost directional strength well below their mid-lines, also in line with new slides particularly on a break below the mentioned daily low.”

Support levels: 9,790 9,741 9,685. Resistance levels: 9,867 9,914 10,000.


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