Technical Update - DAX and Euro Stoxx 50 taking out supports indication July lows to be reached
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
DAX closed yesterday below key support at 12.864 and opened with a gap this morning. DAX is likely to test March and July lows within a few days.
If DAX closes below the 12,438 it has confirmed its downtrend that is likely to take DAX down to around 12K and strong support at around 11.580. RSI is currently testing the rising trendline and a close below is a strong indication this bearish scenario playing out on DAX.
Euro Stoxx 50 is currently trading below support 3,477. If Euro Stoxx closes above the support today we could see a minor bounce. However, RSI is below 40 indicating lower levels is to be expected and a drop to the July lows at around 3,357 is likely. .
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