DAX 30 WEAK ON BREXIT DEVELOPMENTS, EU ECONOMIC HEADWINDS
DAX 30 futures are currently trading at 11158-lower by 0.67% as compared to the last closing. The index futures turned negative today after closing in the green in the previous trading session. Further back, DAX 30 futures closed in the red in 4 out of the last 6 trading sessions.
In the Cash Markets, DAX 30 was down by 0.48% at the time of writing. The index was lower today due to a sharp fall in technology stocks, which sent U.S markets diving and spread to the Asian and European markets. The index has lost 2.1% in November.
European indices were lower today as investors remained cautious in the face of Brexit developments, concerns over Italy’s budget and wider geopolitical tensions. Also on the market radar is German GDP data which is scheduled to be released tomorrow.
Top losers in the DAX 30 include- Covestro (down 3.76%), EON (down 2%), BASF (down 1.31%) and Adidas (down 0.88%) at the time of writing.
The German Government will release its final estimate of GDP for the third quarter on Friday. The GDP is expected to fall 0.2% QoQ. In addition, the Manufacturing PMI (Preliminary reading) for November is also scheduled for tomorrow. The index is expected to rise 52.3 from 52.2 in the previous month.
On the technical front, the RSI is currently at 39.64% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Limit Sell at 11190. Take Profit at 11090. Stop Loss at 11240.