Dax falls over 1% in pre-ECB trading
The Dax accelerated lower on Wednesday, extending weakness into the second consecutive day and being on track for the biggest one-day loss since July 19.
Global stocks eased on worries about the slowing pace of global economic recovery, with European shares being additionally hit by market nervousness ahead of ECB policy meeting on Thursday, when the policymakers are expected to debate a cut in central bank’s stimulus.
The index price was down 1.4% in Asian / European trading and hit one-month low (15590), following a probe through pivotal Fibo support at 15643 (38.2% of 15030/16022 upleg.
Fresh bears need daily close below this level to generate negative signal for an end of consolidation range and extension of pullback from new record high (16022, posted on Aug 13).
Daily techs work in favor of such scenario as momentum studies are negative and MA’s (10;20;30) turned to bearish setup, while weakening weekly studies also point to a deeper correction.
Clear break of 15643 Fibo support would risk extension through 100DMA (15567) and test of top of rising daily cloud (15494).
Only return and close above 20DMA (15843) would neutralize bearish threats.
Res: 15722; 15788; 15843; 15925
Sup: 15643; 15567; 15494; 15417