DAX30 bears fail to take over control – bulls chomping at the bi
In our last technical research piece last Monday, our headline read:
"Bearish divergence in the DAX30 CFD – test of 12,450 ahead?"
and not only did we get to see a close of the gap at 12,450 points, but the German index took on further momentum over the last days of trading and tested the region around 12,300 points.
Now, in our opinion, things become interesting from a technical perspective: the drop lower consisted of some sharp ups and downs in the lower timer-frames and resulted in a bullish divergence now which indicates that the DAX30 bears failed to take control so far and the bearish momentum diminishing again.
If the bulls can now reconquer 12,430/470, the bullish divergence could be considered confirmed and further gains up to the current yearly highs around 12,650 points are likely.
If we drop on the other hand below 12,300 points a push as low as 12,180/200 points is a serious option and the short-term long sequence which stays in play on H1 as long as we trade above that region is in danger.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
"Bearish divergence in the DAX30 CFD – test of 12,450 ahead?"
and not only did we get to see a close of the gap at 12,450 points, but the German index took on further momentum over the last days of trading and tested the region around 12,300 points.
Now, in our opinion, things become interesting from a technical perspective: the drop lower consisted of some sharp ups and downs in the lower timer-frames and resulted in a bullish divergence now which indicates that the DAX30 bears failed to take control so far and the bearish momentum diminishing again.
If the bulls can now reconquer 12,430/470, the bullish divergence could be considered confirmed and further gains up to the current yearly highs around 12,650 points are likely.
If we drop on the other hand below 12,300 points a push as low as 12,180/200 points is a serious option and the short-term long sequence which stays in play on H1 as long as we trade above that region is in danger.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.