GER30 DAILY CHART
Technical Outlook: The German DAX has been trading within the confines of this ascending slope line formation (red) extending off the 2016 lows with price reversing off parallel resistance back in November. A waning momentum profile and failure to hold above the 2017 high-close at 13480 suggests the index remains vulnerable for further losses in the days ahead.
Look for initial daily support targets at the 2017 high-week reversal close at 13127 backed by the 100-day moving average at ~13038– note that this threshold converges on the proposed median-line of a near-term downslope (blue) and a break below this level would be needed to suggest a more significant high is in place. Such a scenario would shift the medium-term focus lower towards key confluence support at 12734/39– a region defined by the 200-day moving average & the 50% retracement of the late-August advance and converges on a pair of slope lines (roughly second week of February).
GER30 240MIN CHART
Notes: A closer look at price action further highlights this slope with a near-term pitchfork extending off the January highs deriving virtually the identical gradient of the broader structure. That said, we could see a bump off this confluence at 13169 but the focus remains lower for now while below 1341. A break lower targets 13127 and the 13038/67 support zone- look for a reaction there.
Bottom line: I’ll favor fading strength while within this formation with a daily close sub-13038 needed to suggest that a larger reversal is underway. Keep in mind we get the release of German Retail Sales and Unemployment Claims tomorrow morning.
GERMANY 30 IG CLIENT SENTIMENT
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