GER30 stock index corrected sharply to the downside and under the 12,300 support level in the face of worse-than-expected PMI readings out of Germany and the whole Eurozone on Monday.
Traders are currently waiting to see whether the bears can next breach the bottom of the Ichimoku cloud in the four-hour chart as the short-term bias has switched from neutral to bearish according to the RSI and the MACD.
Slipping below the cloud and the 12,262 number, the price may stall within the 12,178 and 12,100 boundaries, where any violation would shift attention to the 11,989 barrier and the 200-period simple moving average (SMA). Slightly lower, 11,855 could also attract interest ahead of the 11,700 number.
Alternatively, a rebound above the cloud would bring recent highs around 12,490 back into focus. Should the buyers overcome that peak, the door would open for the 12,600-12,660 region, while further up, a tougher obstacle could emerge near 12,887.
Overall, GER30 index remains in an upward move since mid-August and only a close under 11,855 would clearly put the market back to neutrality.
