Technical Update - DAX/GER40 and EuroStoxx50/EU50 finding support. Trend reversal or minor bounce?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Résumé: Analysis includes GER40 and EU50 cfd support and resistance levels and charts
DAX bouncing from key strong support at around 14,675. Could bounce to 14,933. If closing above 14,980 the upper falling trendline likely to be tested for a possible move to 15,250.
However, RSI is in negative sentiment with no divergence indicating likely lower levels. A close below 14,675 Next support at around 14,458.
Weekly RSI is negative supporting further downside potential
GER40 cfd. Downside risk to 14,458. Break above 14,936 could fuel a rally to test upper falling trendline and possibly 15,250
EuroStoxx50/EU50 finding support at 4K with RSI divergence indicating downtrend exhaustion. Rebound should be expected.
A close above 4,083 upper falling trendline likely to be tested for a possible move to 4,180-4,200.
Medium-term: Downtrend supported by negative sentiment on RSI. Key support at around 3,977. A close below could send the Index to 3,800