DAX falls on lockdown news

Germany´s chancellor Angela Merkel announced yesterday the extension of the country´s lockdown until March 14.

State officials urged citizens to maintain social distancing rules. The German stock index DAX30 fell on the news, making a 2,5% retracement from its all time high on Monday. By the end of the day it climbed higher but closed in the red, not being able to erase losses.

On the 4 hour chart the price should get above the descending trendline (purple) to challenge previous high at 14.085 (A) and the all time high at 14.176 (B). The previous low together with the 50 moving average seem to form a resistance for now. Holding this resistance could mean further downward pressure. Should the index fall below the 13.885 level (C), more bears could step in to force it lower, as no major support level can be found in the short distance.