GER30 Supported, Trying to Avoid a Negative Week
GER30 Analysis
Renewed tensions around Ukraine this week have led to risk aversion and the EU Commission to propose a new fifth package of sanctions against Russia a few days back [1]. This included an embargo on coal imports from Russia, which seems like it may not be easy to pass, but refrained from a gas and oil ban which would be a more contentious topic, given Germany's and the continent's dependence.
Sentiment shows some improvement since yesterday and the index tries to return above the EMA200, but may find it hard to do so and to avoid weekly losses (black line). The fact that it defended the 38.2% Fibonacci of the March Low/High rise helps its ascending aspirations and gives it the ability to push for higher highs (14,960), but it does not yet inspire confidence for such moves.
Furthermore, the upside contains some significant roadblocks, such as the descending trendline form this year's highs (14,760), the 200Days EMA (15,000) and the daily Ichimoku Cloud.
Despite today's constructive mood, investor sentiment is fragile and GER30 is in precarious position, as long as its stays below the EMA200. This can lead to new pressure towards 13,787-13,693, but a catalyst will be needed for a larger decline that would expose it to 13,394-09.
Nikos Tzabouras
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 27 May 2023 https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_2281 |
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