DAX 30 May Slide To 9659 As Risk Appetite Remains Low
- The DAX 30 is short-term bearish below Friday’s high of 10,089, but the index is also approaching major levels which may limit the slide
The DAX 30 is, like so many other equity markets around the world, struggling. The index remains bearish below Friday’s high of 10,089 and would need to break this level for buyers to take over. Until this happens however, the index may keep on slipping lower. The next support level (and target for bearish traders) is this morning’s low of 9659. A break to this level may trigger a decline to the psychological level of 9500.
Looking at the DAX from a longer-term perspective, the downside may be limited as it is nearing its September low of 9300 and the price is getting oversold. The situation is fairly similar to the S&P 500, which is near its August and September 2015 low. For the bearish momentum to continue and to break these major lows, the markets would probably need further negative news.
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Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.