Germany’s DAX Index, which has fallen to the lowest level in more than two weeks, may decline further before rebounding from near its 50-day moving average, according to ING Groep NV.
The benchmark gauge for German equities has retreated 1.1 percent in the last three trading sessions, the longest losing streak since Aug. 21. While the DAX may drop to 8,455, or 1.3 percent from its current level, the measure will rebound if it falls to its average price over the last 50 days, currently 8,395.82, according to Roelof-Jan van den Akker, a senior technical analyst at ING. The DAX sank 1.1 percent to 8,570.23 at 1:53 p.m. in Frankfurt today.
“The former falling trend line and the 50-day moving average line are both offering solid support around the 8,400 level,” Amsterdam-based Van den Akker wrote in a report today. “Therefore, we should consider this short-term weakness as an interesting buying opportunity.”
The DAX has lost 1.4 percent since reaching a closing high of 8,694.18 on Sept. 19 as political wrangling fueled concern the U.S. government will shut down for the first time in 17 years and as Italian Prime Minister Enrico Letta struggled to save his administration. The index has rallied 13 percent in 2013 and is still up 5.7 percent in September after the Federal Reserve unexpectedly refrained from paring bond purchases.