DAX Stalls at March Lows

Tuesday was a big day for equity markets as indices soared at around 2 per cent. However, investors seemed to take an advantage of this rally and, therefore, DAX traded lower on Wednesday. It was 0.55 per cent weaker during the London session and it traded at around 11,750 EUR.

The first major resistance for DAX is now at March and April lows, which are located in the 11,800 EUR region and the price has failed to breach them. Another area to be considered might be at 11,900 EUR.

The medium-term picture still resembles a bearish trend, as the latest short-covering rally is only a temporal correction. As long as DAX remains below 11,900 EUR, the bearish pressure could resume.

Today's first bids may be grouped near 11,700 EUR, where the short-term highs after the latest sell-off are located. If the price drops below this level, we could see a possible quick decline back to 11,600 EUR. However, for the bearish trend to be confirmed, DAX needs to decline below the current cycle lows at 11,400 EUR.

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