GER30 Takes Another Beating
GER30 - H1
The German index sheds around 1% and runs its fourth straight losing day, breaching key technical levels, amidst poor investor sentiment. Markets continue to worry about the pandemic in Europe - and Germany in particular - in the aftermath of Austria's lockdown, while improved PMIs from Eurozone and Germany did little to help.
Risk-off mood provided the fuel for the breach of key 15,950-18 area, in line with Monday's analysis. This is the 23.6% Fibonacci of the "October lows/November record highs" rise, which creates increased risk for deeper correction towards 15.732-26, but we are cautious at this stage for a broader decline that would threaten the 15,493 support.
The move looks overextended and a rebound above 16,000 would be reasonable, but significant improvement in sentiment would be needed for a move back above the EMA100 (at around 16,150).
Near-term bias is tilted on the downside, but as long as GER30 can contain this corrective move to shallow levels (above 38.2% Fibonacci), it can eventually find impetus to push towards its record highs (16,302).
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Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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