ANALYSIS
NQ100 Finds Support from PPIApr 14
DAX40:The Recovery Could Not Be Permanent
At the beginning of the week, we saw that the DAX40 index received some reaction to the limited decline in global investor stress. However, while it is known that the European Union (EU) members expect the cut in Russian gas to increase, we observe that the sales to the index are outweighed by the recession risks to the Euro Zone economy. Technically, the index pricing, which confirms the downward trend with the strong resistance it faced in the 100-period weighted moving average (WMA), can continue its losses to the lowest level of 12 735, 3.5 months, if it can end the support of 12 890. However, it is unlikely that the index will enter a meaningful recovery path unless it permanently surpasses the 100 WMA, which marks 13 245.
