DAX retains a bearish tone – FXStreet

By FXStreet FXStreet (Córdoba) – European stocks closed the day sharply lower, despite oil surged, with the energy-related equities among the main losers, after US stockpiles rose to levels not seen since 2003. Oil’s intraday recovery was backed by dollar’s weakness, and most market players see it as temporal, as the economic slowdown seems to be spreading now towards the US.

The German DAX closed the day at 9,434.82, down by 143 points or 1.53%. The index followed Wall Street in electronic trading, plummeting further to 9,347, but later recovering near 9,500, where it stands.

DAX technical view

“From a technical point of view, the daily chart retains the bearish tone seen on previous updates, with the index well below its 20 SMA and the technical indicators heading south below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are turning slightly higher, but remain below their mid-lines, while the 20 SMA has turned south well above the current level, providing a strong resistance in the case of further recoveries, around 9,659”.

Support levels: 9,410 9,335 9,256. Resistance levels: 9,543 9,659 9,718.
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Source:: FX Street