DAX-Ger30 Latest News
It was a bearish day for the DAX which saw the revisit towards 10280 which we had expected and it sits at 10288 as we write this. The day began bearish over general weakness in the market and the day ended even more bearish as Deutsche bank fears spooked the markets and caused a fall in the major stock markets all over the world during the US session.
The day began with the DAX quickly breaking down towards its support at 10500 and though it did try to make a break back higher, it failed and the sellers slapped it down below the support at 10500 down towards the support at 10420. The bearish selling did not stop there and it continued breaking through support at 10420. Then came a period of consolidation before the fears about the situation at Deutsche bank and its repercussion gripped the markets and caused a rapid fall in the DAX towards the support at 10280.
For today, we could expect a bullish opening as the DAX tries to bounce off support but it also depends on how the Deutsche bank news materialises and what sort of effect it has on the markets. These are things beyond the control of the markets and also the traders and thats why it is very important for traders to be extremely careful under such circumstances. If the bank fears worsen, then it could point to a systemic problem and it could lead to a further crashing of the markets. If the DAX breaks through 10280, then we are looking at a further crash towards 10000 which would seriously dent the confidence in the stock markets all around the world and could have a domino effect.