😱Sell-off in Europe 📉

Major European stock market indices launch a new week with big bearish price gaps. Declines deepened after the start of the cash session. Concerns over the potential Russian invasion on Ukraine can be named as the reason behind deterioration in moods. Media reported late on Friday that US intelligence thinks Russia will invade Ukraine within days, even before the end of Winter Olympics in Beijing. German DAX and French CAC 40 trade 3.2% lower, UK FTSE 100 drops 1.9% while FTSE MIB drops3.5%.

We have wrote about possible scenarios for the conflict in our weekend analysis.

Taking a look at DE30 from a technical point of view, we can see that the German index dropped below a key support zone in the 15,000-15,100 pts area. This zone halted downward moves in the past. If breakout does not turn to be a false one, the next support to watch can be found in the 14,800 pts. This area saw numerous price reactions in the past. A break below this hurdle risks a bigger sell-off fuelled by hitting stop loss orders.

Source: xStation5