Ger30: The upward movement slows. Will the market turn down?
The upward trend of the German share index 30 (DAX) lost momentum with yesterday’s trading. After the market tried in vain to break through 11,650, it fell back to its short-term, tertiary upward trend line.
Technically, the MACD is approaching its trigger line. The scenario could turn bearish if the MACD turns in and cuts the trigger line from above to below.
Currently, the index has stopped at its trend line. If this trend line does not give support to the bulls in the next few trading days, there are two areas of support for the Ger30. The first possibility is the structural level around the 11,358 area. The second possibility is the larger upward trend line which started on December 27th, 2018 and had its second support point on February 8th. If the bulls do not take control by then, further support could be in the 11,150, 10,986 and 10,826 ranges. If the market breaks through here as well, further price declines could follow, which could then find their last support in the wide zone of 10,400 points before the picture clouds completely.
On the other hand, bulls can significantly improve the outlook for further price rises by piercing the 11,650 range. The next, more considerable, resistance might then be in the 11,950 regions. If the market manages to jump over this hurdle without any problems, the next significant structural levels at the 12,311 and 12,707 are waiting on the way up.
Ger30 Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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