The Dax 40 remains under pressure as a brewing energy crisis compounds a hawkish ECB. The index bounced off the base of a bullish breakout in mid-July (12700). A combination of profit-taking and fresh buying led the recovery after the RSI fell into the oversold area. However, trend followers were eager to sell into strength near 13300 from the last leg of sell-off. The lack of purchasing power may continue to depress the price action. A fall below 12700 would send the index to the double bottom (12400) on the daily chart.
