Technical Update - EuroStoxx50/EU50 and DAX/GER40 could be resuming uptrend after bounce Technical Update - EuroStoxx50/EU50 and DAX/GER40 could be resuming uptrend after bounce Technical Update - EuroStoxx50/EU50 and DAX/GER40 could be resuming uptrend after bounce

Technical Update - EuroStoxx50/EU50 and DAX/GER40 could be resuming uptrend after bounce

Equities 3 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

  • A close below support at 4,976 for the EuroStoxx 50 could prove to be a false break. A daily close above 5,053 will confirm this.
  • The EU50 CFD has closed above the key support at 4,966 twice and could resume its uptrend with a close above 5,052


  • The DAX's bounce from key support at 17,900 suggests the uptrend could resume. A crucial factor will be whether it can negate the top and reversal pattern, with resistance at 18,326 being pivotal
  • For the GER40 CFD, the key resistance is at 18,328, and key support is at 17,862

The EuroStoxx50 Index closed Thursday below the support level at around 4,976, suggesting a possible confirmation of a corrective downtrend.
However, today's bounce indicates the potential for this to be a false break. If the Index closes above 5,053 and the RSI closes back above the 60 threshold, it would support a scenario where the recent break was misleading and an uptrend might resume.

Despite the positive signals, the bearish engulfing top and reversal pattern remains intact and a concern. This pattern will stay valid until there is a daily close above 5,122. A close above 5,053 would be a strong indication that the top and reversal pattern wiill be challenged, suggesting a potential shift in momentum.

Should the EuroStoxx50 Index drop again and close below 4,976, it is likely to trigger a sell-off towards the support level at around 4,888.

Source all charts and data: Saxo Group
The EU50 CFD has twice spiked below support at 4,966 only to close above, and it seems likely to resume an uptrend. A daily close above 5,052 and an RSI close above the 60 threshold will confirm this scenario.

Yesterday, the DAX tested the lower rising trendline and key support at around 17,900 but managed to close above it. With today's bounce, the DAX could resume its uptrend. The RSI is still exhibiting positive sentiment with no divergence. Combined with a potential close above its falling trendline, this is indicating that the DAX could resume its uptrend.

If the DAX closes above 18,326 and the RSI closes above the 60 threshold, this scenario will be confirmed.

Should the DAX close below 17,900, the rebounding scenario is likely to be demolished, with the DAX likely to sell-off down to 17,620

The GER40 CFD bounced strongly in late trading yesterday and seems likely to resume an uptrend. A daily close above 18,328 or an RSI close above the 60 threshold, whichever comes first, will confirm that this scenario is likely to play out.

Conversely, a daily close below 17,862 will confirm a downtrend with potential down to around 17,612.

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.