• European equity markets remain muted compared to their US counterparts
  • A breakout of a 4-week range seems to be key to set further targets
  • Key technical levels: 13 195, 13 142, 13 100 points

The end of the past week was quite successful for the European stock markets and the DE30 as well as it took a stab at breaking an upper limit of a range which had been forming for several weeks. However, the stock markets across the old continent remain still on the back foot when compared to the US counterparts which in turn systematically were setting new highs since the beginning of November. DE30 remains still below the last month’s peak while the November payroll report from the US economy halted the euro depreciation which was underpinning the German index last week. Right now investors seem to zoom in on the US tax reform as a joint version of the bill has to be hammered out in order to enable the US president to sign it yet before Christmas. Having said that one may assume that this story has been already priced in at least to some extent.

link do file download linkUS indices have outperformed their European counterparts lately. Source: xStation5 

Weekly (W1)

The German index trades above an important support at 12 850 points at a weekly time frame. Even as bulls regained control on the market, a bearish pattern which drew at the beginning of November remains constantly in place. That said, a further scenario will depend on a breakout of the ongoing consolidation thus a deeper pullback ought to be still considered alike.

link do file download linkFurther declines remain on the cards. Source: xStation5

Daily (D1)

Looking at the chart beneath one may notice the two zones which have set a range for trading. Once the price breaks through a support sellers could be able to go toward 12 500 points. Nonetheless, should bulls take control anew a try to breach 13 500 points might be possible as well. Finally do notice that the latest daily candlestick was a shooting star, hence selling pressure could mount.

link do file download linkA breakout of a consolidation could decide on a further direction of the DE30. Source: xStation5

Hourly (H1)

An intraday time frame illustrates quite an interesting view where a few pivotal technical levels might be set: a resistance nearby 13 195 points, a support at 13 142 points and a subsequent support zone placed at around 13 100 points.

link do file download linkA move through a resistance might pave the way for a larger increase whereas a breakout of the first support would increase odds for a move below 13 100 points. Source: xStation5