DAX 30 Technical Outlook: The 200-day Comes into Play
DAX 30 / CAC 40 Technical Highlights
- DAX 30 trading around the 200-day moving average
- CAC 40 lagging behind but along for the ride
DAX 30 trading around the 200-day moving average
The DAX continues to climb to new heights during the recovery, now pressing above the 200-day moving average for the first time since breaking it back towards the end of February as the coronavirus sell-off was just getting underway.
There might be some resistance around this area, especially with some key gaps (12367) also in play now. But it might not lead to a sell-off as global markets generally continue to exhibit solid price action. It will require a turn and burn lower to undermine the stability of the rise.
The next gap-fill to watch above the 200-day is 12367, then the big one from late-Feb over 13k. There lies the top of the channel off the low as well, this could be a capper of sorts on further strength. Should we see a turn down, or at some type of consolidation, watch how well price can stay buoyed to determine whether it could lead to a continuation trade.
DAX Daily Chart (challenging the 200-day/gaps)
CAC 40 lagging behind but along for the ride
The French benchmark continues its laggard ways, but will go the way of European markets in general, and that way still looks like up. Similar to the DAX not long ago had the underside of a trend-line from 2011, the CAC is trading at it now. There is also the bottom of the March 6/9 gap right in that same vicinity. This might make for a point of resistance worth noting. A surge into the gap could quickly see it filled up to 5139.
CAC 40 Daily Chart (2011 t-line, gap)
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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.