GER30 Setting Up For Potential Higher Trough
Weekly
After the panic-driven selldown for the week ending 19 November, the DAX (GER30) has used the support level around 15,000 (blue shaded horizontal) to regroup. The index has charted a reference trough (T) and a reference (P) and we are assessing if a higher trough (HT?) charts. This will depend largely on next week's price action i.e., a higher low and a close above this week's high will confirm the higher trough. We do note that next week's candle needs to be treated with caution as it will be subject to liquidity distortions given the time of the year. Notwithstanding, a higher trough lays the foundation for the next swing towards a higher peak, but does not guarantee it.
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Past Performance: Past Performance is not an indicator of future results.
Daily
The daily chart reflects positivity too. The DAX (GER30) has pushed its way into the bullish area, between the upper blue and upper red bands. The current candle's position is tentative. For more confidence, the Bollinger bands will need to react accordingly and head in the same direction as the trend.
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Past Performance: Past Performance is not an indicator of future results.
FeaturedImage by Gerd Altmann from Pixabay
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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