DE30: New sell-off or just short-term profit-taking?

1:28 PM 10 March 2022

The German benchmark index is pulling back from the psychological 14,000 point mark again. 

D1 chart

The DE30 loses more than 3% of its value on Thursday. On Wednesday, the index had been able to recover strongly - briefly a gain of around 1,000 points was observed. However, selling pressure increased within the Supply Zone (in red). Such a zone is defined by the last bullish candle before the downward movement.

Source: xStation5

H1 chart

The DE30 is correcting today almost to the 61.8% retracement of the recent upward impulse. The short-term trend structure has been bullish since Monday's rise above the local highs (see circle). But to reverse the long-term downtrend, the index would need to sustainably break the EMA200 and resistance at 14,100 points.

Source: xStation5

Maximilian Wienke, CFTe
XTB Germany

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