The Germany economy are getting slower. It doesn’t mean, that economy is going to recession, but slowdown is incoming. It shows up also PMI index from Germany, which are still above the 50 value, currently 55 that is still good. But when we compare January or February we get the value around 57. Slowly growing Euro has also impact on DAX falls.
When we look at the chart we can see a big trend channel, which was building up more than 16 months. Now, the market is breaking it downwards. What could happen next?
The best confirmation will be the weekly candle. But daily had already close below the trend channel. The is a possibility of retest 2018’s bottom near the value – 12 000. At this point is important market reaction. Next chance is pull-back and retest the edge of channel. There is a chance, that market could try to get into lines again.
But we need to keep in mind, that the market broke the line of channel and it is bearish signal in general. The market is below the exponential moving averages. EMA will be consider as support areas from the market.
This analysis has only education purpose. This is not trading or investing advice. While you are trading, we recommend you to adhere strict money and risk management.