The German index has been rallying nonstop since March 5, and it was seen 1% stronger on Friday, trading at new record highs near 15,500 EUR.

The short-term support seems to be at previous highs near 15,300 EUR, and if not held, a decline toward the medium-term uptrend line at 15,000 EUR could occur. Additionally, there is also a stronger support line near 15,150 EUR. 

It looks like the bullish momentum could persist for the next few days, considering so many strong supports on the four-hour chart.

However, the monthly candle is now way above its Bollinger bands, which has historically been a strong sell signal. 

On the upside, the next target for the rally could be at 15,500 EUR and afterward at around 16,000 EUR. The index is very overbought and very overstretched to the upside, but the momentum is strong indeed. 



About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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