Technical Update - DAX/GER40 extending uptrend testing key resistance Technical Update - DAX/GER40 extending uptrend testing key resistance Technical Update - DAX/GER40 extending uptrend testing key resistance

Technical Update - DAX/GER40 extending uptrend testing key resistance

Equity 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

DAX/GER40 is cancelling top and reversal pattern extending short-term uptrend. Testing key 13,565 resistance. Uptrend is stretched. Will it extend to 13,948?

 

DAX closed above 13,445 thereby cancelling the top and reversal pattern formed last week. Now the resistance is at 13,565. If DAX closes above that level 13,948 is next.
A close above 13,948 would mean that DAX has reversed its medium-term downtrend.
However, 13,565 could be a struggle. There is divergence building on daily RSI and 200 daily SMA will also provide resistance. However, DAX is in a short-term uptrend as long as the Index does not close below 13,022. The wedge like formation drawn on the chart (two black rising lines) is not yet confirmed. Prices must touch the lines a minimum of 5 times to be confirmed but keep an eye on the lines especially the lower line for a possible breakout. The rising channel on RSI could also be first indication of a possible bear break.


Source all charts and data: Saxo Group

The GER40 cfd/DAX future is testing the resistance at 13,571. It is likely that GER40 will break it but the key question; will it close above? DAX cash Index is key here. If GER40 closes above 13,571 next resistance is at around 13,975.
The GER40 is also testing the upper rising trendline. It is not a strong resistance it is merely just a guideline and could be the upper trendline in a rising wedge.
13,013 is key support. If broken the uptrend is likely to be reversed.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Support Centre
For existing clients, please click here to request support via the Support Centre.

Have a question about our products, platforms or services? Visit the Support Centre to find answers for our most frequently asked questions. If you are still unable to locate an answer to your question, you will also find contact details for your local Saxo office to speak with a representative.

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.