European shares closed lower on yesterday session as investors reacted to worse-than-expected data from the euro zone and disappointing corporate earnings from the mining sector. Germany’s Markit Services PMI number, meanwhile, fell to 52.1 in November and down from October’s final reading of 54.4.
Ger30 initially fell but found enough support at 9,367 to turn things around and close in the green near the high of the day creating a hanging man pattern. Stochastic is showing a overbought market setting lower highs and price is making higher highs, signs that the upside may begin to get exhausted.
Expecting a downward move to daily support at 9,060 on a break below daily resistance zone at 9,366 (scenario 1) or a break above the 200 day moving average at 9,512 could push the Index to a daily resistance at 9,716 (scenario 2).
Ger30 is a CFD written over DAX30 futures.