 Hello and welcome to the CMC markets chart of the week video with me David Madden. Today's date is Wednesday the 5th of September 2018 and the time has just gone 1215 British summertime This feature of the week is a check as the tax the German market and the reason why I won't talk about the German market today Is effectively because the the tax drop below a fairly significant area of support And has also managed to actually trade down to a level not seen since early April So we are talking a Marker reaching a five-month low which really gives indication of actually how negative a sentiment is on the German market If you take a look at the price action in recent months, what we can see here is that After the the June rally the market traded lower and it was the first occasion where it respected this area here I've been around 12,100 the market pushed higher here in July But those have a July high got nowhere near the June high Market push lower yet again I once again respected the the support in around the 12,100 area and the push to higher again in August But once again the August high was below the July to the July high and then again the market drifted lower once again I said instead of actually supporting the Is there actually respecting rather the support area in around the 12,100 area market actually break below What so we've now seen two lower highs and actually now a lower low and as I mentioned at the start of the video We're now I bet we traded this morning at levels not seen since early early Early apologies early April. So we are talking about multi-month low. So the sentiment is quite weak It's also what pointing out how how underperforming the jerk the tax is in comparison with the US markets This here is a German market in late August It's nowhere near the July high Which is nowhere near the May which is nowhere near the June high which is nowhere near the all-time high Meanwhile over the over in the US the S&P 500 Back in August was at all-time highs at the Nasdaq all-time high So a really good indication of how negative sentiment is in Germany and how underperforming The German market is in comparison with some of the US indices now It's also we're pointing out that there's quite considerable trade tensions between the US and the EU Another month ago the rest and that you both pledge to pry and actually cut down the trade barriers between both sides a few days ago President Trump actually is looking to get a rollback on that and President Trump knows full well the European car manufacturing sector And particularly the German car manufacturing sector As it is a way of actually applying pressure to Brussels So if you're going to trade the tax, please keep an eye out for President Trump's tweets and the relationship between Brussels and Washington DC Now if you do better to continue to push lower on the German market, the next layer to keep on air for would be 12,000 on the DAX it's a big psychological number and it's an area of tourists and traders We would keep an eye out on if you go south of 12,000 And there to keep an eye out for will be will be in around here Levels not seen since April in around the 11,800 region if you go south of that They keep an eye out for this area here just shy of 11,700 in round 11,692 If we do see any bounce backs In the DAX in an area of potential resistance could be this blue line here the fifthly moving average which comes into play just shy of 12,500 and if you go beyond that The late august high of just shy of 12,600 12,597 There they're about And if you go beyond that I know to keep an eye out for will be this red line here the 230 moving average which comes into play at 12,600 and 78 And notice how we're actually acted as both resistance and also a support in recent months And if a metric is acted as both support and our resistance in recent months It makes it all the more likely that it will act as support and our resistance in the near term In relation to to the to the To the to the video itself and the other video content that we hear at CNC markets I've been producing if you have any feedback feel free to leave a comment or any positive or negative Any feedback at all on google reviews. Well, that's all for me this week. Thank you very much