Technical Update - DAX/GER40 & Eurostoxx50/EU50. Strong rebound but resistance ahead
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX bounced strongly from 14,675. Paused at 14,933 but with the opening today above 14,980 key resistance there could be further upside potential for DAX. A test of the upper falling trend line is likely. A spike up to 15,250-15,280 minor resistance could be seen.
The 55 Moving Average will also provide some resistance
If DAX is closing above the falling trend line AND especially if RSI is closing above 60 threshold the sentiment is shifting to bullish. It could pave the road higher to 15,482-15,575.
Around that level the declining 100 and 200 Moving Averages add to the resistance.
If DAX is being rejected at 15,280, closing below the falling trendline and if RSI is being rejected at 60 threshold the downtrend is likely to resume
A close below 14,933 will confirm down trend has resumed
GER40 cfd. Broken above 14,936 resistance and is likely to test upper falling trendline. A break above and spike up to the 0.382 retracement at 15,330 could be seen.
A close above could lead to a 15,516-15,560 resistance.
Declining 100 and 200 Moving Averages will add to the overhead resistance.
Key is RSI 60 threshold. Will it close above or being rejected.
EuroStoxx50/EU50 closed yesterday above resistance at around 4,082 and is currently testing the upper falling trendline. EuroStoxx50 is likely to test the 55 daily Moving Average and the 0.382 retracement.
However, key resistance at around 4,210.
Key is also RSI, will it close above 60 or being rejected. A close above will confirm positive sentiment indicating likely higher Index levels. If RSI is being rejected at the 60 threshold down trend is likely to resume