The purchasing managers’ indices published this morning from Germany, France and the euro zone came in below the expectations of the analysts’ guild and caused recession fears on the market on the one hand and interest rates to fall on the other. This in turn put pressure on bank shares – the shares of Commerzbank, which focuses on SMEs, were by far the biggest daily loser in the MDAX small cap index, falling by a good 8%.
How should the share be classified from a chart perspective?
The share recently had noticeable difficulties (double top) to overcome the EUR 8.50 mark on a daily closing price basis. With today’s daily candle, the bears have taken the helm in the short term.
Further selling pressure is to be expected here in the coming trading days. A possible target of the current sell wave lies in the area of the EMA200 in the daily chart around the medium-term upward trend line.
This corresponds to the EUR 6.80 to 6.90 range in the coming days. Procyclical buy signals would only be generated at a daily close north of 8.50 EUr, until then, downside risks dominate here for the time being.