European shares end the session lower to start the trading week. Sharp gains for major indices this month.

Technical Analysis

Author: Greg Michalowski | german-dax

German DAX erases earlier gains to close lower. For the year German DAX closed in the black after sharp gains this month

The major European shares are ending the session lower. The German DAX and UK FTSE erased earlier gains to close near session lows.

The provisional closes are showing:
  • German DAX, -0.3%
  • France's CAC, -0.7%
  • UK's FTSE 100, -1.0%
  • Spain's Ibex, -0.9%
  • Italy's FTSE MIB, -0.7%
For the month, the major indices closes sharply higher:
  • German DAX, +15.01%
  • France's CAC, +20.12%
  • UK's FTSE 100, +12.93%
  • Spain's Ibex, +25.18%
  • Italy's FTSE MIB, +22.95%
For the year, the German DAX is closing month with a gain of for the year. The other major indices are still lower but with the sharp gains this month erased a lot of the declines:
  • German DAX, +0.32%
  • France's CAC, -7.69%
  • UK's FTSE 100, -16.5%
  • Spain's Ibex, -15.42%
  • Italy's FTSE MIB, -6.15% 

Looking at the daily chart of the German Dax below, the price high today fell just short of the September high of 13460.46. The high price reached 13445411 before rotating lower. The high price for the year was back on February 17 at 13795.24. The low price for the year reached 8255.65 in March. Since then the index has risen by 60.74% off the lows. 

Technically, the month of November opened up near its lowest level since May, but stalled at the 38.2% retracement of the years trading range at 11472.22. The subsequent rise to the price back above its 200 day moving average (green line at 12043.75) and 100 day moving average (blue line currently at 12849.90), tilting the bias back to the upside.

In other markets as London/European traders look to exit:
  • spot gold is trading down $5.44 or -0.31% at $1782.29
  • spot silver is trading down $0.05 or -0.22% at $22.52.
  • WTI crude oil futures are down $0.62 of -1.36% of $44.91
  • Bitcoin on the Coinbase exchange traded up to $19,873.23. Depending on which exchange, that was a new all-time record high (on Coinbase the high is at $19,891.99).
In the US stock market, the snapshot of the current market shows declines across the board:
  • S&P index -33 points or -0.90% at 3605.55
  • NASDAQ index -76.5 points or -0.63% at 12130
  • Dow industrial average -384 points or -1.29% at 29524.90
In the forex, the GBP has taken over from the CAD as the strongest of the majors. The AUD is still the weakest. The USD moved from being mostly negative, to mostly positive vs the major currencies. It is now higher vs. the EUR, JPY, AUD and NZD and lower vs the GBP. It is near unchanged vs. the CHF and CAD. 

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