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25 Apr 2016
DAX upside favored - FXStreet
European stocks ended lower as renewed concerns over Chinese economy dragged basic metals lower, resulting in the mining sector posting sharp losses. The German DAX lost 78 points and closed the day at 10,294.35, also weighed by the local IFO survey, showing business sentiment softened in April, down to 106.60 against the 107.0 expected.
Auto-makers also suffered as the emission scandal resurged on news Daimler was reviewing its certificates in the US, with Volkswagen down 1.9%, and Daimler closing 0.7% lower this Monday.
DAX technical perspective
“The daily chart for the benchmark, however, continues favoring the upside, as the index has quickly recovered from a slide below its 200 DMA and closed the day above it, whilst the Momentum indicator maintains its bullish slope within overbought territory, and the RSI indicator hovers around 62,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is currently below a bullish 20 SMA, while the technical indicators have turned flat within neutral territory, increasing the risk of a downward extension, on a break below 10,226, this Monday's low.”
Support levels: 10,278 10,226 10,151. Resistance levels: 10,430 10,491 10,569.
Auto-makers also suffered as the emission scandal resurged on news Daimler was reviewing its certificates in the US, with Volkswagen down 1.9%, and Daimler closing 0.7% lower this Monday.
DAX technical perspective
“The daily chart for the benchmark, however, continues favoring the upside, as the index has quickly recovered from a slide below its 200 DMA and closed the day above it, whilst the Momentum indicator maintains its bullish slope within overbought territory, and the RSI indicator hovers around 62,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is currently below a bullish 20 SMA, while the technical indicators have turned flat within neutral territory, increasing the risk of a downward extension, on a break below 10,226, this Monday's low.”
Support levels: 10,278 10,226 10,151. Resistance levels: 10,430 10,491 10,569.