Technical Update - DAX/GER40 closing gap testing key resistance. Higher levels likely
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
DAX closed above it the lower resistance of the gap at 13,565. If it closes above the upper resistance at 13,762 today it has closed the gap. Next minor resistance the 0.618 retracement at 13,824 and at the 0.764 retracement at 14,162. Also expect some resistance at the falling (Black) trendline.
RSI is back above 60 indicating higher levels are likely. To reverse this bullish picture a close below 13,335 is needed.
GER40 cfd/DAX future is at the time of writing trading above resistance at 13,675 testing 100 SMA.
GER40 is likely to test 0.618 retracement at 13,822.
A move towards the falling trendline and the 0.764 retracement at 14,161 is not unlikely. RSI above 60 with no divergence supports this picture. To reverse the uptrend a close below 13,330 is needed.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.
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)