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Hugo in HTO Trading,

DAX30: Making lower highs and lower lows

Since the beginning of the year the index fell more than 7.5% plus last week fell more than 2.0% however is in a recovery phase since the beginning of March.

Last week the index initially fell but found enough support to trim some of its losses and close in the middle of the weekly range, but managed to close below previous week low, suggesting a weak bearish momentum.

The Stochastic is showing lack of momentum although is still above the 50 mid line.

Expecting a downward move to 2015 low at 9,300 (scenario 1) on a bounce off a weekly resistance at 9,849 but a break below the previous week low at 9,472 could drag the index down to a weekly support at 8,822 (scenario 2).