German stocks finished lower yesterday with the DAX30 hitting both our support levels at 13900 and 13800 despite the business climate index rising to 92.4 in February from 90.3 in January. However, gains in cyclicals helped offset earlier weakness, as rising bond yields and inflation are prompting investors to dump interest rate-sensitive stocks and turn to more value-driven stocks. Today, technical indicators signal more weakness ahead, as the blue-chip index remains below the 200-period SMA, and the RSI points lower suggesting the selling is not over yet.
Support: 13900 / 13860 / 13800
Resistance: 14000 / 14100
