Technical Update - DAX/GER40 testing year long falling trendline. EuroStoxx50 struggling to reach Double bottom target Technical Update - DAX/GER40 testing year long falling trendline. EuroStoxx50 struggling to reach Double bottom target Technical Update - DAX/GER40 testing year long falling trendline. EuroStoxx50 struggling to reach Double bottom target

Technical Update - DAX/GER40 testing year long falling trendline. EuroStoxx50 struggling to reach Double bottom target

Equity 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

DAX/GER40 testing year long down trend and Fibo levels. Will it be rejected once again resuming bear trend?  
EuroStoxx50 struggling to reach potential Double Bottom targets. 


DAX
is testing 0.786 Fibo retracement of the September downtrend at 13,200 and the falling trend line going back most of 2022. (Black falling line).
RSI is above 60 meaning positive sentiment and indicating higher levels could be seen. However, last time DAX tested the falling trend line (circled on the chart) RSI was also above 60 but failed to build further upside momentum and bear trend resumed.
IF DAX cannot close above yesterday’s high at 13,203 sellers could take back control pushing the index lower.
If DAX is being pushed below 12,914 selling pressure could accelerate. A close below 12,548 bear trend resumes.
If DAX on the other hand manage to close above 13,203 it could test strong resistance at 13,565.
RSI is key here; if it drops back below 60 followed by a close below lower rising trendline the uptrend seen since September trough is likely to be over
Source: All Charts and data Saxo Group

GER40 identical picture. Testing falling trend line and 0.786 retracement. If closing above 13,218 there is upside to 13,570.
IF sliding back below 55 SMA (Dark blue) bears could get renewed energy. Below 12,541 bear trend has resumed.

Weekly DAX chart: Down trend is still intact in DAX currently testing 0.618 retracement of the mid-August to End-September down move. Strong key resistance at 13,565 is a few points above the 0.786 retracement. That level is key for medium term Bull/Bear trend. If closing above, it is a strong indication of Bear trend is over and foundation for a new uptrend.

EuroStoxx50 is hovering around its 0.786 retracement at 3,590, trying to reach 1.618 projection of the double bottom pattern at 3,625. If EuroStoxx 50 fails and slides back below 55 and 100 SMA’s and RSI drops back below 60, it could give Bears renewed energy.
Strong overhead resistance at 3,683.

Disclaimer

The Saxo 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 is not intended to and does not change or expand on this. 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 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 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 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 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 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-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo 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.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning 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. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

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 are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.