The German benchmark index breaks out of the falling wedge formation to the upside.
It is only on the third day of the recovery that the DE30 is able to reach the much-watched 50-day moving average, highlighting how strong the five-day sell-off was that was initiated a week ago on Tuesday. In order for the short-term environment to become bullish again and the double top formed at the all-time high can be tested, the index would need to sustainably break above the 20-day moving average.
Today's rise allows the DE30 to fight its way back to the area between 15,445 and 15,693 points, which particularly determined the price action in the first half of June. Will the index soon decide on a clear direction? As long as the lower limit of the range as well as the 200-hour moving average can be defended, buyers should have an advantage.
Maximilian Wienke, CFTe
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