DAX30 MIXED/BEARISH AMID TURKISH LIRA CRISIS

DAX30 futures are currently trading at 12358 – higher by 0.11% from the last closing. In the previous week the index declined 1.74% as the fall in the Turkish Lira affected European markets.

German GDP (QoQ) growth rate for the second quarter was 0.5% better than the expected value of 0.4%, official data showed on Tuesday. GDP growth rate for the first quarter was 0.4%. However, economists are concerned that the global trade tensions and the ongoing currency crisis in turkey could bring problems to the economic engine of Europe.

 

RWE and Beiersdorf are among the top gainers on the index gaining around 4% and 2% respectively at the time of writing. While Bayer and BMW are among top losers. Bayer shares plunged more than 10% on Monday after a California jury ordered the company’s newly acquired Monsanto subsidiary to pay $289 million for not warning of cancer risks posed by its main weed killer.

 

On the technical front, the RSI is currently at 37.93% and suggests that the market can continue trading sideways. The %K has crossed the % D from above to the downside at 38.95%, and this suggests that the market may head downwards. The current price action is coinciding with the lower band of the bollinger bands after having overshot the lower band yesterday. Today’s high and low have both shot above/below yesterday’s levels and the current price action is placed above yesterday’s close. This is a classic sign of an outside day and the market may be setting up for a short term bounce-back. .However, overall the market setup seems to be mixed to negative.

 

Trade Suggestion-Limit Sell At: 12400, Take Profit At: 12320 Stop Loss At: 12440

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