Technical Update - DAX and GER40 rejected at key resistance levels. Will selling pressure resume?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX and GER40 cfd rejected at key resistance. Will buyers have another go at it or will selling pressure resume pushing the Index to new lows
DAX was rejected Friday at key resistance at 12,673. A close above next strong resistance is at 12,927.
If DAX drops back in the GAP area i.e., closes below 12,358 selling pressure is likely to accelerate in an effort to push DAX below 12,09. If sellers succeed in closing DAX below 12,209 and RSI drops back below 40, September low at 11,862 is likely to be tested and taken out.
If that scenario plays out Consolidation area lows at around 11,450 is in sight.
GER40 cfd/DAX Future was rejected at 12,700. To continue rebound GER40 must close above 12,703 for 12,900 resistance level.
If GER40 can’t keep upside momentum and starts sliding back below 12,354 selling pressure is likely to accelerate. And if GER40 then drops back below last weeks low at 11,993 we are likely to witness a push towards strong support at around 11,508
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