European shares steady, DAX hits new record high
LONDON Nov 28 (Reuters) - European shares steadied in early trade on Thursday, with investors refraining from placing strong bets due to a U.S. holiday that could keep volumes in check during the rest of the week.
Germany's DAX index rose 0.2 percent to a new record high, building on the previous day's gains following a coalition deal in the country. However, the index could face some technical selling pressure in the coming sessions.
"There is a strong uptrend. Nevertheless, given the extremely overbought readings on the longer-term technical indicators, there is scope for a pullback in the near-term," Bill McNamara, technical analyst at Charles Stanley, said, referring to the DAX.
The DAX's 14-day relative strength index surged to 77.9, the highest since May. A level above 70 is seen "overbought" and often leads to a pullback.
At 0807 GMT, the pan-European FTSEurofirst 300 index was up 0.1 percent at 1,302.23 points, and remained on track to post its third straight month of gains. The index, up nearly 15 percent this year, has risen in 16 out of the past 18 months and climbed to a five-year high in early November.
U.S. markets are closed on Thursday for the Thanksgiving holiday and will finish early at 1800 GMT on Friday.
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