DAX 40 - German stock market remains under pressure
Despite the fact that the leading stock indicators of the Eurozone showed strong growth in yesterday’s trading, the German market index was able to interrupt its global decline only briefly, and now the DAX 40 is correcting down, trading at 12140.
The upward dynamics was a reaction to the rhetoric of the President of the European Central Bank (ECB) Christine Lagarde, who announced an increase in interest rates at at least three subsequent meetings of the regulator. At the same time, the GfK Group published October data on the indicator of Consumer Confidence in Germany, which is the leading indicator. The value turned out to be the worst in the history of observations, dropping to -42.5 points from -36.8 points in September, which was the main reason for the negative dynamics of the DAX 40 index.
On the daily chart of the asset, the price is trading within the global descending channel, falling towards the support line. Technical indicators have been holding a sell signal for a long time: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, having moved into the sell zone, continues to form downward bars.
Support levels: 11850, 11200 | Resistance levels: 12400, 13060