Summary:

  • Will DAX (DE30 on xStation5) follow its counterparts from France and Italy?
  • A breakout above 13 500 points could open the way for fresh rises
  • 13 750 points seem to be the closest resistance once the index pushes higher

European indices have continued their rally despite the stronger euro. Having said that, the German DAX remains still below its November’s highs while the stock markets in France and Italy (CAC40 and FTSE MIB respectively) have already reached their new peaks. Therefore, one may assume that those equity markets could constitute a leading indicator for the DE30 heralding that the index ought to keep its upward momentum.

link do file download linkWill DAX (DE30 on xStation5) follow its counterparts from France and Italy? Source: xStation5

Weekly (W1)

A zone nearby 13 500 points seems to be a key resistance from a longer-term point of view. A breakout of this level to the upside could prompt buyers to increase their involvement, hence a move toward an upper limit of a channel cannot be precluded.

link do file download linkAn area in the vicinity of 13 500 points seems to be a key resistance. Source: xStation5

4-hourly (H4)

The price is constantly keeping to move within a triangle formation with a chance to see the price above an upper boundary of the pattern. Notice that this formation heralds increased volatility in the nearest time which could give a rise an extended rise once the price breaks through a resistance. One may expect the price will be hovering above the broken supply zone.

link do file download linkThe DE30 could take a stab at breaking out of the triangle formation. Source: xStation5

In turn, looking for any more notable resistance one may pay attention to a 127.2% retracement (13 750 points). On top of that buyers could struggle to break above an upper boundary of the channel. On the other side supports might be localized nearby a lower limit of the channel and a reach of the latest pullback (300 points).

link do file download linkThe German index could test a resistance at 13 750 points. Source: xStation5

15-minute (M15)

Having looked at the intraday chart one may notice that the nearest support may be found at 13 377 points.

link do file download linkThe overbalance strategy at the intraday chart. Source: xStation5