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Ger30: Inside day on a daily support

European shares closed mostly higher yesterday, as investors focused on key data from the euro zone rather than the geopolitical risk posed by the protests in Hong Kong. In the euro zone, investors are still focused on what the European Central Bank (ECB) will announce at its policy meeting tomorrow.

Today on the economic calendar we have from Germany the Markit Manufacturing PMI in September that is expected to drop, but should stay above the 50 level signaling economy expansion.

Ger30 is in a bearish phase and holding at a daily support zone within 9491 and 9367 price levels. Yesterday the Index had a second close below the 50 day moving average confirming the bearish phase and it’s range was within the previous day range forming an inside day, a compression in the market, so we may expect a market expansion (wide range) in the next few days. The stochastic is displaying an oversold market.

Expecting a downward move to daily key level at 9,265 on a break below previous day low at 9,402 (scenario 1).

Ger30 is a CFD written over DAX30 futures.