The downside momentum yesterday was strong on the DAX shedding over 300 points from the open and that’s not including the gap. This is twice the average daily range and takes us below the value area low for January.
This morning we saw an attempted bounce thwarted just below 13,300 and price broke moved lower, breaking yesterday’s low, signalling further downside momentum. There are no obvious downside targets at the moment, as the closest exposed point of control [beneath current price] is around 12,870, which will likely be out of reach today.
Be aware that the market is in a price discovery phase and looking for value around current levels. So it’s possible we consolidate between 13,175-13,275. However, the base scenario is a continued move to the downside.
DAX Key Levels
|Point of Control||13224|
|Value Area High||13334|
|Value Area Low||13187|