DAX 40 in Liquidation Mode

The Dax 40 slumps over risk-off sentiment into the holiday season. The rally came to a halt near last June’s high of 14700. Then a break under the lower end (14150) of the previous consolidation forced leveraged positions to close out, sparking volatility in the process. The psychological level of 14000 has failed to contain the sell-off and turned into a fresh resistance. 13600 is the next support. As the RSI sunk into oversold territory, those looking to buy the dip may want to wait for the liquidation to settle down.