Technical Analysis – GER 30 index stalls appreciation above SMAs; momentum slows    


Anthony Charalambous, XM Investment Research Desk

Germany 30 Index (Cash) seems skewed to the upside as the price has moved above the rising simple moving averages (SMAs) and the Ichimoku cloud. Although the sideways market looks to be tipping towards the upside, it is currently on weak positive momentum, something also reflected in the Ichimoku lines and the short-term oscillators.

The MACD, is holding above its red trigger line in the positive area with weak momentum, while the RSI gradually points higher in the positive region.

To the upside, initial resistance may occur at the three-and-a-half-month peak of 12,931. If buyers drive the index higher, the 13,160 border achieved on February 20 may attempt to halt further advances. Conquering this, the price may climb towards the 13,572 barrier before shooting for the all-time-high of 13,826.27.

If sellers resurface, early support may develop from the Ichimoku lines and 50-period SMA at 12,613, residing at the upper surface of the Ichimoku cloud. Sinking further, the lower band of the cloud at 12,430 – where the 100-day SMA currently resides – could impede the drop from challenging the 200-period SMA at 12,328 beneath. Should sellers persist, the key lows of 12,081 and 11,956 may come under pressure ahead of the critical 11,516 – 11,588 support zone.

Overall, the neutral-to-bullish picture appears to be tilted to the upside. A break above 12,931 could strengthen this view, while a shift under 11,516 may return worries of negative moves.