In regards to the near term future, the index was expected to continue to surge, as it faced no technical resistance as high as the upper trend line of the large scale channel up pattern near 16,500.00. However, note that the 16,000.00 mark is highly likely going to provide resistance. Meanwhile, a potential decline of the index could look for support in the previous all-time-high level near 15,700.00. Below this level, the 55-hour SMA might keep the index up. On Friday, October 29, the Germany 40 index found support in the 15,500.00 mark. By doing so, the rate, first of all, reveled a channel up pattern, which captures the October surge. Secondly, the index appears to be heading to this year's high level zone at 15,940.00/16,035.00.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : 

Shifting attention to our short-term oscillators, we see that the RSI exited its above-70 zone and moved lower, while the MACD, although above both its zero and trigger lines, shows signs that it could fall back below its trigger line soon. Both indicators suggest that some ease of the index’s upside speed, which supports the notion for some further retreat before the next leg north.

A continuation of the surge would most likely test the resistance of the high levels at 15,940.00/16,035.00. A passing of these levels would see the index at new all-time-high levels.

On the other hand, a bounce off from the high level zone might force the index into looking for support in the channel up pattern's lower trend line.

GER30 trading at yearly highs

Nov 05 2021