Dax index despite a positive start turned lower a of writing as the easing package from European Central Bank failed to calm investors. ECB announced earlier a bond buying program of 750 billion of company and government debt across the eurozone in an emergency move to offset the coronavirus outbreak impact.
The German IFO Business Climate dropped to 87.7 in the preliminary reading for March. Clemens Fuest, of IFO institute, said the German economy might shrink by 6% due to the coronavirus outbreak. Earlier this week, Germany’s ZEW Current Conditions Index dropped to -43.1 from -15.7 while the Economic Sentiment Index slumped from 8.7 to -49.5.
Read our Best Trading Ideas for 2020.
Dax Index Support and Resistance
Dax index is 0.82% lower at 8,372, as the sell-off in German stocks continue. The index is hovering in oversold level as indicated by the RSI (14) at 12.85 a level that we haven’t seen since the financial crisis in 2008. The Dax technical picture is bearish, and lower levels might be on the cards.
On the downside, initial support for Dax stands at 8,323 the daily low. In case the pressure continues, the next support zone stands at 8,253 the low from March 16.
On the flip side, immediate resistance for index stands at 8,625 the daily top. A move above might test March 17 highs at 9,135. A break higher might challenge 9,933 the high from March 12th trading session.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.