You are here: Home > articles > Forex > Technical Analysis – GER 30 index returns to the green zone after 6-week lows
Technical Analysis – GER 30 index returns to the green zone after 6-week lows
February 2, 2021 11:25 amVideo
Latest News
- Forecast for EUR/USD on April 19, 2024 April 19, 2024
- Forecast for GBP/USD on April 19, 2024 April 19, 2024
- Forecast for USD/JPY on April 19, 2024 April 19, 2024
- Technical Analysis of Intraday Price Movement of Litecoin Cryptocurrency, Friday April 19 2024. April 19, 2024
- Technical Analysis of Intraday Price Movement of Polkadot Cryptocurrency, Friday April 19 2024. April 19, 2024
- Michelle Bowman reiterated Jerome Powell’s opinion April 19, 2024
- The ECB has finally made up its mind April 19, 2024
- The dollar is in control April 19, 2024
- Analysis of the GBP/USD pair on April 18, 2024 April 18, 2024
- Analysis for EUR/USD pair on April 18th. Dull ending to a dull week April 18, 2024
- USD/JPY: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- EUR/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: trading plan for the US session on April 18th (analysis of morning deals) April 18, 2024
- Trading Signals for EUR/USD for April 18-20, 2024: buy above 1.0641 (21 SMA – 2/8 Murray) April 18, 2024
- Bitcoin slides ahead of halving event – Crypto News April 18, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 18-20, 2024: buy above $62,500 or $63,037 (4/8 Murray – rebound) April 18, 2024
- GBP/USD. April 18th. Andrew Bailey did not clarify the situation on QE April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 18-20, 2024: buy above $2,375 (6/8 Murray – 21 SMA) April 18, 2024
- Technical Analysis – Netflix stock moves within narrow range ahead of earnings April 18, 2024
The German 30 index (cash) drifted northwards after refusing to close below 13,380 on Monday, despite sinking to a six-week low of 13,260 earlier in the day.
The rebound has stretched beyond the simple moving averages (SMAs) in the four-hour chart, but currently the bulls seem to struggle to overcome the 61.8% Fibonacci level of the 14,133 – 13,260 downfall at 13,800, where the surface of the Ichimoku cloud is also positioned.
With the Stochastics looking to change direction in the overbought territory and the RSI testing a major resistance zone above its 50 neutral mark, downside corrections in the price cannot be excluded in the near term. Still, unless those indicators show a convincing downside reversal, the bulls may keep pushing towards the 13,930 – 13,970 congested region. Should the 14,000 mark prove easy to breach too, the index may re-challenge its record high of 14,133.
Note that a golden cross between the 50- and 200-period SMAs is in progress after six months, flagging a potential improvement in the market trend. Meanwhile, the red Tenkan-sen line has forcefully crossed above the blue Kijun-sen, while the MACD has finally entered the positive region, also reflecting growing optimism in the market.
In the event of a pullback, the index may seek shelter near the 50% Fibonacci of 13,696, a break of which is expected to generate another negative extension towards the 38.2% Fibonacci of 13,593.
Looking at the medium-term timeframe, the market refused to adopt a neutral outlook following the bounce on 13,260.
Summarizing, the German 30 index is expected to extend its recovery in the short run, although some stabilization cannot be excluded.
The post Technical Analysis – GER 30 index returns to the green zone after 6-week lows first appeared on XM.
Related Posts: