DAX 30 Pulls Back As It Fails To Break Yesterday’s High
- At the time of writing, the DAX 30 was little changed.
- The DAX 30’s short-term trend was bullish above Monday’s low of 9906, as it remained the most recent swing low.
- There are no major market movers on deck today. The only attention grabbing news piece is a report from the U.S. today, namely Existing Homes Sales.
The German DAX 30 (CFD: GER30) was little changed at the time of writing, but the sector performance paints a different picture. The Utility and Information Technology sectors were the weakest, down by 1% and 0.94% respectively. Winners were the Financial and Consumer Discretionary Sectors and they were up by 0.43% and 0.41% correspondingly.
Utilities (German energy producers) were the softest whilst the business press mentioned the softer crude prices as a reason for the sector’s decline. Crude oil prices slid as Kuwaiti gas and crude oil workers ended a three-day strike. Crude oil production in OPEC’s third largest oil producer is expected to rise from a low of 1.1 million barrels a day, to the normal 3 million barrels.
The DAX 30’s short-term trend was bullish above Monday’s low of 9906, as it remained the most recent swing low and preceded the April low of 9437, the price also having created higher highs, hence, the short-term trend was bullish.
Potential short-term support levels were the Fibonacci retracement levels of 10,202 (38.2%), 10,147 (50%) and 10,091 (61.8%), these levels having been derived using Monday’s low and today’s high as reference points. We do note that the 10,147 (50%) level is not a Fibonacci level, and even if the Fibonacci retracement tool provides for it, this level is highlighted as important amongst technical traders.
A short-term resistance level was today’s current high of 10,378, which was level relativity near to yesterday’s high; we note that price attempted to break yesterday’s high this morning but has since then pulled back. Beyond today’s high of 10,378, the next resistance levels are the psychological level of 10,500 followed by the December 29 high of 10,880.
There are no major market movers on deck today. The only attention grabbing news piece is a report from the U.S., namely Existing Homes Sales.
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DAX 30 | CFD: 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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