Blake Morrow’s Chart of The Day – Apr 7th 2021
The German DAX found resistance at the 127% Fibonacci extension of the COVID lockdown move in 2020. As the German DAX has played “catch up” to the US markets the last several weeks as investors have been searching for value over growth with the recent move higher in yields, the DAX has been a relative outperformer as an index. However, the DAX reached some key resistance following the Easter holiday and posted a gravestone doji which could suggest some near term weakness. Dips back to the 14,450 lows of last week should provide good support on dips. We must also note the daily RSI is at levels not seen since 2017.