DAX 30 Led Lower By Softer Energy Shares
- The DAX 30 remains range bound and is therefore lacking a strong trend.
- Critical levels for the DAX 30 are the March high of 10,118 and the April low of 9437.
- The next potential market mover is tomorrow’s German ZEW Expectations Index.
The DAX 30 (CFD: GER30) remains trapped between the March high of 10,118 and the April low of 9437. As long as price remains caught in the range as mentioned earlier, it will be hard to say what is next for the DAX 30.
The next resistance level beyond the March high is the January 5 high of 10,400, followed by the December 29 high of 10,880. Support beyond the April low is the February 24 low of 9123, followed by the February 11 low of 8705.
In today’s session, the DAX 30 was lower by 0.42% at the time of writing, something that has dented the very short-term uptrend in place following the creation of the April 7 low of 9437. Today’s losing sector is, unsurprisingly, the Utility Sector (Energy).
Energy-related firms took a hit worldwide after there was no accord at Sunday’s oil production meeting in Doha. Brent crude oil prices (CFD: UKOIL), were trading lower by 4.2% following the lack of agreement to freeze crude oil production, something which has pressured the share price of energy in Asia and Europe.
There is no market-moving event on deck today, the next one occurring tomorrow with the German ZEW Expectations Index. The index is published monthly and shows a mild correlation of +0.47 to the end of month DAX 30 YoY change since January 2007. A move higher in the German ZEW Expectations Index tends to lead to a rise in the DAX 30 YoY Change.
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DAX 30 | FXCM: GER30
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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