European markets haven’t received much love this Valentine’s Day, with the DAX falling to an 8-month low, while the FTSE100 has seen its second biggest one day fall this year, driven largely by declines in travel and leisure, as well as banking stocks.

Today’s falls have largely come about as a hangover from the late falls seen in the US on Friday, as well as heightened concerns over the direction of travel with respect to events on the Ukraine, Russia border.

GER30 is trading below the exponential moving averages 50 and 200 in the one hour chart but the stochastic, Awesome Oscillator and Relative Strength Index are showing signs of hawkish momentum. GER30 has gained grounds above a major order block in the daily time frame, 4211 acting as the support line of the order block. The indice is expected to take a bullish reversal, after failing to provide a new low in comparison to the one made on 24 January 2022 near 4211, indicates that we will be witnessing a pullback towards the exponential moving averages 50 and 200 in the daily time frame. Our upper trend line on the daily chart was broken on 2nd Feburary but the exponential moving averages 50 and 200 were strong enough of a resistance for the market to adapt to a bearish tone. Fortunately we can consider that as a retest after monitoring GER30 sustaining above the trend line and confirming the bearish retest behaviour.  4317 is a support of minor degree on four hour chart with a possible formation of head and shoulder pattern with neckline present at the aforementioned price. This can be taken as another bullish sign for positioning our entries for bullish projections on GER30.

GER30 Hawkish Above the Daily Order Block

Feb 15 2022