The Germany 30 Index has continued to churn sideways above the 12900 key medium-term pivotal support and slightly below its strong resistance that exists around its all-time highs near 13590.
The price action combined with the is staying strong, but GER30 has formed a divergence, which often indicates that a trend reversal is forming from to , and a downtrend or valuation adjustment could soon follow.
In addition, given the configurations seen in the S&P 500 , we don't have the conviction to maintain the bias for the Germany 30 Index. Thus, its trend will likely turn neutral at this juncture between 13590 and 12900. A break below 12900 and the middle line of the validates a potential corrective decline below the 12500 levels.
On the flip side, only a daily close above 13600 opens up the gates for a further rally to target the next resistance at 14550, which is a 1.272% Fibonacci level and upper boundary the large .
Once the price reaches the resistance 1.272% Fibonacci level, a rejection could cause a fall to the previous all-time high level.
- Support level: 12900
- Resistance level: 13590
- Day's range: 13361.8 — 13508.0
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