DAX maintains the bearish tone – FXStreet

By FXStreet European equities edged sharply lower, with banks’ shares falling to multi-year lows, on mounting concerns over central banks setting negative rates and yet being unable to prompt economic recovery. Also in the dark side was oil, down to almost 13-year lows and dragging energy-related shares down.

Deutsche Bank shares plunged more than 7% after Wednesday’s rally, weighed by speculation the bank can go down.

DAX technical perspective

“The German DAX closed at 8.752.87, 2.93% lower, and the daily chart maintains the bearish tone seen on previous updates, although the index has managed to trim most of its daily losses in after-hours trading. In the mentioned chart, the Momentum indicator heads south near oversold readings, while the RSI indicator consolidates around 30, far from suggesting an upward move”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have bounced from oversold levels, but remain well below their mid-lines, while the 20 SMA caps the upside with its bearish slope around 9,014”.

Support levels: 8,743 8,692 8,620. Resistance levels: 8,874 8,960 9,014.
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Source:: FX Street