DAX30 Still Looks Neutral in Short-term

The DAX30 index currently faces a challenging resistance area at 13,190. The index is holding the rebound from the 23.6% Fibonacci retracement of the October 4 low (13,879) to November 19 high (13,338.25) rally at 12,970. The 55-day moving average has risen to 12,827. Yet the positive slope in the 55-day SMA that increases distance above the 200-day EMA suggests that the bullish trend is intact and an eventual reversal could come later rather than sooner.

On upside, if the price break above upper border of Bollinger Bands at 13,350, our first target is Nov. high 13,374.27. A clear break of which could see the bulls to retest the all-time high level of 13,597 registered in late January 2018.

A closing price below Tuesday’s low of 12,927 and the 55-day SMA could encourage more selling pressure. However, only a significant fall below 12,660 would put the current uptrend under speculation, shifting the medium-term picture from positive to neutral first. There is located also 50% Fibo level on the above-mentioned rally.

Trade active:

First bullish target at 13,374.27 was hit earlier this morning.