DAX: technical indicators head lower – FXStreet

By FXStreet FXStreet (Córdoba) – European equities closed lower after a positive start, tracking a reversal in oil prices. The German DAX closed at 9,736.15, down by 28 points, being weighed by poor local confidence data.

German stocks traded in positive territory, but gave away their early gains as oil prices turned south. Car makers led the way lower after US regulators announced a new recall of about 5 million vehicles with potentially defective Takata Corp airbags. Banks also suffered, with Deutsche down 2.3% and Commerzbank 1.7% lower.

DAX technical perspective

“The index is trading below Friday’s low ahead of the Asian opening, and the daily chart shows that the technical indicators are turning south well below their mid-lines, while the 20 SMA has extended further its decline far above the current level”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index remains above a bullish 20 SMA, but the technical indicators head lower within positive territory, in line with further declines on a break below 9,864, the daily low”.

Support levels: 9,788 9,706.9,633. Resistance levels: 9,877 9,945 10,000.
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Source:: FX Street