Skype: Signal2forex / Whatsapp: +79065178835

No products in the cart.

GER 40 Moves Sideways After Retreating From All-Time High

GER 40 stock index (cash) has been charging upwards since February, recently posting a new record high at 16,296. Although the index plunged after its rally ceased, it has adopted a more sideways pattern in the last few sessions.

The short-term picture seems bearish as the price dived beneath both its 50- and 200-day simple moving averages (SMAs). This imminent negative bias is also reinforced by the stochastic oscillators. The MACD histogram is currently found below its red signal line in the negative territory, while the RSI is flatlining under its 50-neutral mark.

Should the selling pressure intensify and the price breaches through the recent low of 15,167, the bears might then target the 15,020 level. Failing to halt there, the index could move towards 14,815 or even lower to challenge the 14,410 number. If the downward pressure persists, the price may then test the 14,200 barrier.

On the flip side, should the bulls regain the upper hand, immediate resistance would probably be encountered at the recent high of 15,510. If the price snaps that obstacle, the bulls might aim at 15,800 or higher at the 16,040 hurdle. Crossing above these barricades would set the stage for the all-time high of 16,296.

Overall, although the index has retreated from its recent all-time peak, it still holds its bullish long-term structure. A clear break above 16,040 could endorse the reversal of the short-term downtrend, whereas a dip below 14,815 would shift the medium-term outlook to negative.

Share this product!

Do you want to start trade profitably?
Earn 50-300% monthly!