Technical Update - Euro Stoxx 50 uptrend has more room to run. DAX lagging facing strong resistance
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX is likely to test the resistance at 13,565 today. Key question is; however, can DAX close the gap up to 13,762. (a close means that DAX must close above the upper resistance, in this case above 13,762. If it just touches and then retrace it has not correctly closed the gap and it is likely to form at top and reversal formation). 13,762 IS strong resistance. RSI is still below 60 and it needs a close above to turn to positive sentiment.
However, IF DAX indeed closes the gap there could be upside towards 14,500.
From the weekly chart DAX is still well below the medium-term falling trend line. GAP needs to be closed for further upside and test of falling trendline.
Euro Stoxx 50 has closed above its medium-term falling (black) trend line. See also weekly chart. RSI is above 60 with no divergence indicating higher levels are likely. There is room up to around 3,857 without much resistance. That resistance needs to be broke for the Index to have turned medium-term bullish.
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