Date: 12 Oct 2018
The final consumer price index (CPI) in Germany rose to 2.3% year-on-year in September, comparing to the 2.0% registered in August and exceeding analysts’ estimates of 2.0%. It is the highest CPI since November 2011 as prices of services, energy, and food increased at a faster pace.
Since the beginning of October, the German main index lost more than 6.0% and remains in a bearish phase since early August.
On yesterday session, the DAX 30 went back and forward without any clear direction additionally closed in the middle of the daily range, however, managed to close below Wednesday low, which suggests a bearish momentum.
The stochastic is showing an oversold market although is still displaying bearish momentum.
The German index has been setting lower lows and lower highs all signs of a bearish trend as a consequence, yesterday made a new year-to-date low at 11,382.0. In early October, the bearish trend seems to have accelerated, however, yesterday long-legged Doji pattern, also known as a “Rickshaw Man” which suggests indecision in the market and does not mean reversal could just be a sign that the bearish trend is losing its strength.
Ger30 is a CFD written over DAX30 futures.
Written by Hugo O’Neill, External Analyst
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