DAX: increasing downward potential - FXStreet

European equities closed the day mixed, with the German DAX down by 0.34%, to end the day at 10,259.59, as the main focus across the region was on earnings reports, although most of them coming from non-German companies, the main reason of the lack of action across the benchmark.

Overall, banks outperformed fellow sectors after the Standard Chartered ground reported a pre-tax profit of $589 million.

DAX technical perspective

“The index has retreated further from its recent yearly high, and the daily chart shows that it stands a few points above its 200 SMA, but that it has posted a lower low and a lower high, whilst the technical indicators are currently retreating from oversold levels, indicating an increasing downward potential,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is below a horizontal 20 SMA, whilst the technical indicators have lost their downward strength, but remain within negative territory, indicating that further technical confirmations are required to see a bearish extension this Wednesday.”

Support levels: 10,264 10,201 10,151. Resistance levels: 10,320 10,385 10,430.