Concerns about Covid send shares sharply lower
The major European indices are ending the day with sharp declines as concerns about Covid and slower growth weigh on the indices.
The provisional closes are showing:
- German DAX, -2.8%
- France's CAC, -2.4%
- UK's FTSE 100, -1.8%
- Spain's Ibex, -2.8%
- Italy's FTSE MIB, -2.4%
The German DAX on Friday got close to the 2020 high price at 13795.24. The high price on Friday reached 13774.45, and rotated back lower.
Today the price gapped the lower and fell below the 50, 100, and 200 hour moving averages (white, blue, green lines in the chart above). The low price did stall ahead of the swing lows going back to November 13 and again on November 11 near the 13004 level. The low price today reached 13060.34, bounced and went sideways into the close. The price remains below its 200 hour moving average at 13322.95 and 100 hour moving average at 13366.72. Stay below is more bearish
The decline today also took the price back into the meat of the range between 13004 and 13454.13 (Red lines on the chart above). That swing area confined the price action from November 9 to December 16. The break last week only last 3 days before gapping back below the high ceiling in trading today. Going forward it would take a move outside of the range to solicit more buying or selling. With the price now below the MA lines, the sellers have the short term bias tilt.