GER30 sets up to tackle overhead resistance again

  • GER30
    (${instrument.percentChange}%)

GER30 Overhead Resistance


- FXCM's GER30 CFD has substantial overhead resistance (red shaded horizontal) around the 16,300-16,400 levels.
- This infers a price or value at which up movements are arrested due to selling pressure overcoming buying pressure.
- It has hit this level four times since mid-November 2021 (green vertical lines).
- Since then, it has been repelled all four times.
- It is attempting to challenge this resistance again in the near-term.
- There is a danger that the stale bulls overwhelm buyers again as they scramble to exit their positions.

Weekly Analysis


- The GER30 is above its black 30-week EMA and the EMA is turned up. This is bullish.
- The weekly RSI is above 50 (blue rectangle), which is the bullish side of the indicator, denoting a positive underlying momentum.
- The longer it maintains above 50, the greater the likelihood that the overhead resistance (red dashed line) will be overcome.
- We are looking for a bullish reference candle reversal.
- The red candle that has the lowest low in at least three candles is the reference (blue arrow).
- If price closes above the reference candle's high (green solid horizontal), it will be regarded as a bullish development i.e., a bullish reference candle will have charted.
- This does not guarantee a bullish swing, but all swings start with this signal.
- As such, it should take the GER30 towards resistance, if charted.
- This is a weekly analysis, therefore the signal will rely on weekly price action.

Trade the News: View our Economic Calendar

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.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.