Revision of German GDP report for Q3 2022 turned out to be a positive surprise with data being revised higher. German growth reached 0.4% QoQ in Q3 2022, up from 0.3% QoQ in flash release, while year-over-year growth stood at 1.2%, up from 1.1% YoY in flash release. While the German economy is still expected to weaken this winter and upward revision was minor, it was a welcome development and it led to a small jump on European equity indices. However, those gains were erased after the launch of the cash trading session and now indices like German DAX (DE30) trade more or less flat on the day.
Taking a look at DE30 chart at D1 interval, we can see that the index tested 14,600 pts resistance zone, marked with 61.8% retracement of the downward move launched in late-2021. Note that the index has broken above the upper limit of the Overbalance structure at 14,370 so the trend has, in theory, reversed to bullish. First attempt to break above the aforementioned 14,600 pts zone failed and the index pulled back slightly. Nevertheless, it remains in close vicinity and another attempt cannot be ruled out. In case of an upside breakout, the next resistance to watch can be found in the 15,150 pts area.
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Source: xStation5
