The German benchmark index is in recovery mode and could soon hit a key resistance area.
The DE30 trades slightly higher on Thursday after recovering from pre-market losses and closing the bearish gap. Tonight, the price had fallen to 15,617 points - the lowest level since Friday. Since the mentioned low has not been broken so far and the 78.6% Fibonacci retracement of the recent downward impulse has been tested several times, it could be either a strong upward correction or the beginning of a new upward trend.
In order to end the correction in the 4-hour chart, which was extended to the 61.8% Fibonacci retracement tonight, the DE30 would have to break the most important price zone since June 7 at 15,730 points. The area coincides with the upper limit of the falling trend channel, so that a decision could be made here, which should significantly influence the price trend in the next trading days.
Maximilian Wienke, CFTe
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