The German DAX index is down today for the sixth consecutive day and, it was trading at 0.35 per cent weaker during the London session, trading at around 11,920 EUR.
Yesterday's decline stopped at the strong support of 11,800 EUR, which held a number of times in March and April, and the index posted a daily bullish pin bar. Therefore, bulls might try to push the price higher in the near future.
Resistances are located at the psychological level of 12,000 EUR, where yesterday's bounce stopped and then move to around 12,045 EUR, where previous lows are located. If DAX rises above this level, the current bearish pressure could be neutralised with a possible relief rally targeted at 12,200 EUR.
On the downside, should the downward trend continue, the first support may be near 11,900 EUR and if broken, the price could deteriorate back towards the mentioned demand zone of at 11,810 EUR.
Stocks have been dropping globally over the last couple of days, as they were spooked by the rising yield. Should yields continue to rise at the actual pace, we could see another leg lower on the stock markets.
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