ANALYSIS
NQ100 Finds Support from PPIApr 14
DAX40 May Fall to 2-Years Low
Dealing with the energy crisis as a result of the high tension on the West-Russia line, Germany's Ministry of Economy appointed a trustee to Rosneft Germany, a subsidiary of the Russian oil company Rosneft. That means the company is now under federal government control. As a matter of fact, the price of natural gas with October maturity on the European stock exchanges exceeded 200 euros again. On the other hand, German Finance Minister Christian Lindner, who recently pointed out that the risks of recession are high, warned that this time inflation could get out of control with the effect of increasing food and energy prices, while sales are accelerating in DAX40, the region's indicator. In its technical view, it is quite clear that the index has broken the rising wedge and opened the way for downward expansion. The end of the 12 590 level last seen on 5 September could deepen the losses by up to 12 200, as indicated by the Fibonacci 100.0 percent exp. line, behind 12 420. Above, the range of 12 895 – 13 070 will be a strong resistance zone.
