DAX falls to multi-month low as risk aversion accelerates on speculations of banning Russian energy products
Dax index opened with gap-lower on Monday and broke below 13000 marks to hit 12423, the lowest since November 2020, driven by fresh wave of risk aversion.
Global markets panicked after the US and Western allies announced plans to impose a ban on importing Russian energy products, which were so far excluded from the wide package of sanctions.
The news sent a shockwaves across the markets and raised fears that such measure could strongly hurt bloc’s economy, heavily dependent on Russian energy and significantly slow economic growth, as record inflation could rise further.
The index extends steep fall into third straight week, following nearly 8% drop last week and break of key technical supports at 13668 and 13101 (base of thick weekly cloud / Fibo 38.2% of 7940/1629 rally) that generated strong bearish signal, adding to negative outlook, as global migration from riskier assets into safety accelerates on the latest signals of possible deepening of crisis.
Bears focus initial target at 12116 (50% retracement of 7940/16292) and could extend towards 11314 (Oct 2020 through), with limited upticks on oversold conditions to provide better levels for re-entering bearish market.
Res: 12801; 12959; 13101; 13668
Sup: 12423; 12116; 12000; 11314