The DAX extended it’s move to the downside in trading yesterday and continued further during today’s Asian session. Yesterday, the International Monetary Fund Managing Director Christine Lagarde was quite adamant that there will be no signs of compromise going forward in relation to Greek delaying payment.
“We never had an advanced economy actually asking for that kind of thing, delayed payment,” Lagarde said in an interview Thursday in Washington with Bloomberg Television. “And I very much hope that this is not the case with Greece. I would certainly, for myself, not support it.” – see interview here.
German Finance Minister Wolfgang Schaeuble, often a vocal critic of the Greek stance to its bailout obligations, also commented on the Greek situation in an interview Wednesday with Bloomberg Television. He laid out a framework of June 30th by which the Greek government must find a solution to release more funds – see interview here.
Looking at the Hourly chart below, one can see the DAX has remained under bearish pressure, hitting the targets from yesterday’s article of 12000, 11975 and eventually 11922. Price has now broken the key 11900 level and just recently penetrated through the 11850 zone – a key zone since the beginning of March, 11800 and now attacked the 11775/11750 zone.
(click to enlarge)
CONCLUSION – BEARISH
The intermediate bias for the DAX is still to the downside, and the bulls have a lot of work to do to turn that bias back. Can the Hourly bar now close below the 11750 zone?
For bulls, the average trading range for the last 22 days is 195 pips, and the DAX has moved 272 pips. An overextension in the daily range and the key zones (marked in yellow on chart above) allow bulls the chance to define risk against these levels – 11750, 11800, 11850.
For bears, the market is overextended from it’s Hourly 100 & 200 moving averages (blue&green lines in the chart above), overextended in its trading range, so bears should wait for pullbacks before going short to maximise any movement, as a break of the current lows maybe limited.
(click to enlarge)
Bearish targets :-
- 11750 (Key zone of resistance)
- 11700
- 11612 (Daily S3 Pivot)
Bullish targets :-
- 11850 (Key zone)
- 11894 (Daily S1 Pivot)
- 11912