DAX 30 & CAC 40 Charts: Trying to Push Towards New Levels of Resistance
DAX 30/CAC 40 Technical Highlights
- DAX trying to push towards 2011 trend-line
- CAC against trend-line, may head towards price resistance
DAX trying to push towards 2011 trend-line
The other day I noted that if the DAX broke support at 10786 bearish momentum could kick in and send the German index lower. Instead, the market furthered its consolidation along and is trying to rally beyond the October/November lows, September trend-line.
If it can, then look for a retest of the broken 2011 trend-line. This would be an important test if it can climb to that point. Given the general trend and push of the December low it seems likely the long-term trend-line would put a cap on the advance.
A push lower will still require 10786 to break at this time to undermine the consolidation it is currently pressing out of. A break below would be both a failed breakout and a confirmed breakdown. It’s currently the lower probability scenario, though.
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DAX Daily Chart (Test of 2011 trend-line coming?)
CAC against trend-line, may head towards price resistance
Like the DAX, the CAC is up against the 2011 trend-line but looking like it wants to break it. If it does, then the next area of resistance to focus on consists of two swing lows and a swing high from late last year. The area to focus on is 4895/935. A sharp turn lower from here will be needed to turn the picture bearish.
CAC Daily Chart (Eyeing price resistance)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.