ANALYSIS
NQ100 Finds Support from PPIApr 14
DAX40 Unable to Find Strength in Recovering
We see that the signals that the European Union (EU) might postpone the Russia embargo plan after Hungary's opposition have caused a reaction against the DAX40 index. However, while uncertainty about the epidemic situation in China continues, yields on 10-year German government bonds, which are at 0.90 percent in the global bond market and price in the expectation that the European Central Bank (ECB) will raise interest rates in the third half of the year, are a strong obstacle to the recovery of the index. Technically, the index, which uses the 100-period simple moving average (MA) as a strong resistance in its upward attempts, can continue its losses until the 13 370 level seen on May 10, behind 13 550, if it can break the 13 725 support with the dissolution of its contracts. If it is possible to pass over 100 MA, the stabilization zone of the 14 060 – 14 230 range can operate.
