- The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control.
- The DAX has just crossed the lower Bollinger Band® at 14,182, indicating further losses could be forthcoming.
The DAX is down to 14,100, after ending yesterday at 14,460. Overall, a 2.56% loss or 360.2 points today.
The index has been trending positively for about 2 months. The DAX hit a significant low of 15.42 around 2 months ago, but has since recovered 93,676%.
A crossing of the lower Bollinger Band® at 14,182 suggests further losses may follow for DAX. In contrast, the MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for the DAX.
Fundamental indicators – Euro Zone Interest Rate came out at 2.5, while a consensus of analysts was expecting 2.5.
In the meantime, negative performances are also seen in other markets, CAC is down 168.79 points from the beginning of the session and now trades around 6,562. EuroSTOXX closed at 3,868 (down 2.7%). After ending yesterday's session at 2,399.25, KOSPI Composite Index lost 38.25 points and is trading around 2,361.
Upcoming fundamentals: Euro Zone Consumer Price Index is expected tomorrow at 10:00 UTC.