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GER30 holds above 10-Days low

Market Analysis

GER30, H1 and Daily

The GER30 found intra-day support at 13005.00 after drifted lower by 2.5% since Monday’s closing. The Index is currently trading close to 10-Day’s low. A EUR clearly above 1.18 against the dollar is doing little to boost the GER30.

In the Daily basis, the index presents a negative picture, as price action remains in the lower Bollinger Bands pattern and below the 50-Day Moving Average, but above the round level at 13000 and the 23.6% Fibonacci level. The Daily momentum indicators remain neutral for the day with RSI at 48, Stochastic at 57 and MACD pivoting around Zero since November 27. The MACD and Stochastics, are holding above negative territory for the whole December, indicating that the weakness seen this week might be limited.

With the pair in an uptrend in December, holding above the 61.8% Fib level,only a break below the current Support level at 12977.00, could suggest that bears took the control. The break of this level could indicate a retest of S2 at 12882.00 and of the month’s low at 12806.00. Oppositely a break above the halfway seen since November peak,  at 13179.00, suggested a continuation of the upside back to 13300 highs.

Within the day, the pair was unable to gain any significant amount of the losses seen yesterday , since it is consolidating between 13005-13098, so far, with today’s support at 13000. Therefore in the short-term, a break above the 200-period Ma in the hourly chart, but more precisely above the Pivot Point at  13115.00, could suggest some strength up resistance 1 and 50-period Ma, at 13209.00.  However this still seems to be unlikely, with the intra-day momentum indicators being weak and giving selling signals. The MACD is moving negative, while RSI is at 39 and Stochastic at 36.

 

 

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Andria Pichidi

Market Analyst

HotForex

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