Forex Trading Library

GER30 Looks to Remain in Ascending Channel

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The GER30 has been trading in an ascending channel since the yearly lows in March.

Since then, prices have seen a false attempt to break out of the upper channel. This resistance has resulted in the median regression being the next area of support.

From the momentum indicator, a standard and hidden bearish divergence has led prices to the lower channel. Multiple tests to break lower out of the channel have been met with support.

However, another attempt could be expected towards the 50% 11606/13469 Fibonacci leg. As the Ichimoku cloud resistance another move towards the median regression.

A shorter-term perspective looks to bias on the downside. The intraday 12331/13260 Fibonacci leg shows that the index is trading between 50% and 61.8%. Should prices face resistance at the 13000 area, then the lower ascending channel would be the next target.

With prices currently being held onto by the conversion line, this could drag prices to be engulfed into the cloud.

The bearish divergence on the momentum indicator confirms a possible move to the said area. This will be an early indication if the index can once again reach yearly lows. 

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