Two months ago, I called the top in the DAX,
Last week, the final GDP result showed a decline of 0.2% in the third quarter, in line with expectations, but marked the first decline since 2014. Manufacturing PMI fell to 51.6, this marked a fourth straight drop in manufacturing activity.
German industrial output unexpectedly fell in December for the fourth consecutive month, sending another signal that growth in Europe’s biggest economy is weakening. Analysts said the fall makes it more likely that the economy contracted in the fourth quarter, which would translate into a recession after growth domestic product fell in the third quarter.
After nearly a decade of steady growth, the German economy has been facing headwinds from trade frictions between the United States and both China and the European Union. Britain’s possible departure from the EU next month without a deal is also clouding the outlook for German manufacturers.
The dagger is now in because the monthly candle closed below the long term up trend line.
The next major level I’m looking at once the monthly demand at 10300 is breached is the monthly demand at 8000.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.