Both yesterday’s bearish pinbar and today’s red candlestick on the DAX suggest a potential evening star pattern. Moreover, German yields have been rising recently, which makes convergence a possible scenario. As far as other major indices are concerned (those from the US in particular), today’s session has not been determined yet. Still, following recent winning streak, market bulls lack energy to reach fresh all-time highs.
Investors might have spotted significant divergence between DE30 and 10-year Bunds. Taking a look at recent months, one could notice that a convergence often occurred when German Bunds were relatively weak (higher yields). Key support for DE30 may be found at 13,800 pts area, which coincides with the 50% Fibonacci retracement of the recent upward move. It is also the upper limit of the area marked by 14- and 50-day moving average. Daily close below 14,000 pts could potentially trigger a pullback towards mentioned support level. Source: xStation5
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Morning wrap (06.11.2025)