Current trend

The Frankfurt Stock Exchange DAX 40 index is corrected at 15240.0.

The German stock market continues to decline amid rising yields on the domestic bond market, as well as macroeconomic statistics.

According to the August report, Industrial Production in Germany fell by 0.2%, after -0.6% a month earlier, and in annual terms the figure was -1.75% after -2.04%. Tomorrow, data on the Consumer Price Index will be published in Germany: the index is projected to decrease from 6.1% to 4.5%, which increases the prospects for the European Central Bank (ECB) to maintain interest rates at the next meeting.

Current levels of borrowing costs have led to record increases in bond yields, which investors are moving into from stocks. The 10-year notes are trading today at a rate of 2.757%, which is the highest value since June 2011, the rate on 20-year bonds yesterday exceeded the key yield level of 3.000%, and are continuing to rise, and short-term securities are trading with a yield of 3.600%–3.700%.

The growth leaders in the index are Rheinmetall AG ( 7.14%), Adidas AG ( 4.31%), E.ON SE ( 1.45%), Deutsche Telekom AG ( 1.14%).

Among the leaders of the decline are Daimler Truck Holding AG (-3.43%), Infineon Technologies AG (-2.28%), Continental AG (-2.23%).

Support and resistance

On the daily chart, the price is trading in a corrective trend, continuing to work out the downward signal of the global Diamond pattern with a sales level around 14500.0.

Technical indicators are in a stable sell signal state: fast EMAs on the Alligator indicator are at a stable distance from the signal line, and the AO histogram, being in the sell zone, forms corrective bars.

Support levels: 15050.0, 14670.0.

Resistance levels: 15400.0, 15800.0.

Trading tips

If the asset continues declining and the price consolidates below 15050.0, short positions can be opened with the target at 14670.0. Stop-loss — 15200.0. Implementation time: 7 days and more.

If the asset continues growing locally and the price consolidates above the local resistance level of 15400.0, long positions will be relevant with target at 15800.0. Stop-loss — 15200.0.