Ger 40 has been very bearish although we can see that the last time there was this extreme bearishness it caused bulls to create a nice wave of bullishness. Although in the first drop the moving average was bearishness. Although now the moving average is looking bullish. Combined with the fact the drop seems to be slowing. There will be an outburst of bulls.
Comment:
So far, bulls have resisting caused a nice sideways flatline. This is a good sign for bulls as if we look b ack to the first spike (which is circled), right after the drop, there was a flat line being formed. After the flat line there was a spike which caused price to go from 13626 to a peak of 13777. We are looking for a similar spike to be created although potentially larger. I'd say, if there is a spike, it would be a minimum of 13442 and a maximum of 13600...