DE30: What's next after the V-shaped recovery?

11:50 AM June 10, 2021

The German benchmark index is in recovery mode, but faces resistance.

M30 chart

The DE30 managed to recover from the initial losses in a V-shape and is currently testing a key resistance area after forming a double bottom slightly above the round 15,500 level. Buyers are hitting the swing level at 15,605 points and the upper boundary of the bearish flag pattern. An upside breakout would confirm the reversal, while a bounce would see sellers maintain their advantage.

Source: xStation5

D1 chart

Buyers managed to defend the crucial support area for the second time this week: The lower boundary of the rising wedge that began with the May low (14,806 points) and the price zone at 15,526 points, which has acted as support since the breakout on the first day of June. The new bounce raises hopes of a new attack on the record high formed on Monday. The RSI could confirm the trend by a break above the 70 mark.

Source: xStation5

Maximilian Wienke, CFTe
XTB Germany
 

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