Technical Update - DAX, GER40 and Euro Stoxx 50
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX buyers lifted DAX from start to end Friday. Together with divergence on RSI it indicates a short term bottom. A minor correction around 13,400 is not unlikely. If DAX takes out lows from last week another sell off could be fueled. A sell off that is likely to take out March lows at 12,438
GER40 cfd/Future last two trading sessions ended with long lower shadows on the daily candles. Combined with divergence on RSI that indicates sellers cannot maintain control and buyers are coming back support a short term rebound scenario. A rebound that could take GER40 to around 13,415. However, GER40 could get rejected at the short term falling trend line and selling pressure could resume.
Euro Stoxx 50 is bouncing from support at around 3,400. The Index is likely to be range bound the coming week. A close above 3,595 EuroStoxx50 could test that falling trend line. A close below 3,387 selling pressure resumes
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