DAX 30 Technical Outlook Looks Neutral to Negative
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DAX 30 / CAC 40 Technical Highlights
- DAX 30 losing upside steam with big resistance ahead
- Continue to watch 10200 on any downturn
- CAC 40 level to watch is 4318
DAX 30 losing upside steam with big resistance ahead
The DAX has been in a sluggish state lately even if it isn’t rolling over with any real type of momentum. The 2011 trend-line and gaps from March 6/9 continue to be the big hurdle for the German benchmark to jump. Another push up into the 11235/11541 area could find yet another rejection. If the market can muster that much of a gain.
Right now, short-term momentum is generally heading sideways to south, and on that a dive lower to the important 10200 support level could soon be in the works. This could be a big test as it may determine whether weakness is a pullback that could lead to another drive higher, or whether another leg towards the March low is in the works.
For now, watch how the strong top-side resistance plays out on any test as well as the 10200 level on selling. These levels can could be helpful for traders from both sides of the market structuring good risk/reward trades.
DAX Daily Chart (test of 10200 would be important)
CAC 40 level to watch is 4318
The CAC continues to look more vulnerable than the DAX, so even if its German counterpart can keep holding up or better and rally, relative weakness may become increasingly glaring and suggest that the CAC wants to trade back towards the March lows on erosion in broader sentiment. The near-term support level to watch is 4318, while the capper is at 4719.
CAC 40 Daily Chart (levels on both sides)
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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.