DAX Weighed Down below 11,000 within Correction
James Chen June 15, 2015 7:15 PM
<p>June 15, 2015 – Germany 30 (daily chart shown below), representing the DAX index, continues to be weighed down within the current correction from its […]</p>
June 15, 2015 – Germany 30 (daily chart shown below), representing the DAX index, continues to be weighed down within the current correction from its April all-time high.
Since that high of 12,428 in early April, the index has fallen by more than 12%, well more than a typically defined 10% correction, to last week’s three-month low of 10,864. For the first time since February, the DAX traded below the key 11,000 support/resistance level last week.
After rebounding towards the latter part of last week to a high of 11,452, the index once again retreated on Friday and has tentatively continued its decline into the current trading week by falling back below the 11,000 level.
After having broken down below a key uptrend support line in early June and then continuing its downside correction into mid-June, the short-term trend momentum has turned significantly bearish within the past month.
Any major downside move under 11,000 could push the index back down towards its 200-day moving average with a major bearish target around the 10,050 support area, which was a key resistance level before the January breakout to new highs.
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