Technical Analyst, Saxo Bank Group
Summary: Despite opening the first trading day of the new year on a positive note sellers have taken control pushing main European Indices lower. Testing key support levels DAX/GER40 and EuroStoxx50/EU50 could be hit with a correction
DAX opened the first trading day with a jump but has since been sold off. The Index have failed to take out December peak at around 17,003 and could see the support around 16,630 being tested. A close below could fuel a sell-off that is likely the start of a correction that could take DAX down to around 16,096
Support at around 16,470
There is no RSI divergence which is indicating DAX could trade higher performing a new all-time high. A break above 16,964 will confirm the uptrend is to continue
GER40 cfd levels: support at around 16,627 and 16,461.
EuroStoxx50 a correction could be unfolding after the Index has side stepped out of the steep rising channel
A daily close below 4,483 could very likely be fueling a sell-off down to around 4,384-4,363.
A close above 4,569 and the uptrend is likely to resume with the Index eyeing 4,700 level
Divergence on RSI is indicating a weakening and possible exhaustion of the uptrend thus supporting the correction scenario
EU50 cfd levels: Key support at 4,491. A break below could lead to a sell-off down to 4,404-4,361
A close above 4,567 the uptrend is likely to resume
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