Technical Update - DAX and GER40 breaking falling trend, set for rally. Euro Stoxx 50 could be range bound
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
DAX closed Friday above its falling short-term trendline indicating a bounce from lows. Open this morning higher supports a short-term rally picture that could take DAX to its 0.682 retracement at 13,276 but possibly to the resistance at 13,565.
This short-term rally scenario is likely to reverse if DAX breaks below 12,390. First indication of that scenario to unfold could be RSI closing below its rising trendline.
GER40 cfd/DAX future open above its falling trendline and has continued higher this morning. GER40 is likely move higher over the next few days. Some resistance at the 0.618 retracement at 13,182 and the 0.764 retracement at 13,370. Strong resistance at 13,675
If GER40 breaks below 12,384 bear trend resumes.
EuroStoxx 50 could be range bound for the foreseeable future. It has bounced off from lows and is likely to test resistance at around 3,582. The resistance could be too strong to penetrate. However, if the Index closes above a move to test the medium-term falling (black) trend line is likely. A close below 3,357 will reverse this scenario and news lows are very likely.
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)