Technical Analyst, Saxo Bank Group
DAX uptrend is likely to be stalling. RSI has been indicating trend exhaustion.
Uptrend is intact however, but if DAX is closing below 17,620 it could ignite a sell-off down to around 17,326 i.e., upper border of the gap area.
A close below could see sellers trying to close the gap down to 17,118.
A break above last Friday peak at 17,879 could push the Index to 18,000
EuroStoxx 50 reached the 1.00 Extension of the October to December bullish move at 4,980 (two arrows). RSI divergence has been indicating uptrend exhaustion for quite some time
A correction is in the cards.
The Index is currently testing the lower rising trendline. A daily close below is likely to fuel further selling down to support at around 4,812 i.e., the upper border of the important gap area.
If the gap is closed i.e., a close below 4,775 expect increased selling towards 4,700
A break above Friday peak at 4,986.60 the Index is likely to test 5,000
EU50 cfd levels. Support at 4,849 and 4,742
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