As seen in the chart, the index is bearish in a bearish trend. Should traders expect the downtrend to continue? Gain insight into the following German Dax index technical analysis.
18 October, ADS Securities – The German DAX is poised to open mixed on Thursday amid renewed concerns about US-China trade and expectations of a faster pace of US interest rate hikes from the Federal Reserve.
Brexit uncertainty may also keep investors nervous after EU leaders are calling off a summit on the Brexit in November due to the lack of progress. European markets closed slightly lower on Wednesday as auto sales slumped in September and a no-deal Brexit loomed.
In the economic events calendar there’s Germany wholesale price index at 07:00 GMT in addition to US reports on weekly jobless claims due later in the session.
German Dax Technical Analysis
From a technical standpoint, the trend is clearly bearish, showing an intact downtrend in the short and medium term.
The 200-period moving average is acting as a dynamic resistance and the index might pull back to retest it from time to time during the course of the next few hours, until we finally retest a major support at 11460. The RSI looks bearish suggesting price will decline further.
Support: 11460 10785
Resistance: 11910 12185
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