Summary:
- FRA40 reverses after breaching to a new ATH
- DAX struggles to find direction
FRA40
European indices started the week in a mixed moods. The German Dax is trading slightly lower after 12:00 pm BST while the FRA40 index is losing 0.14%. Let's see what the technical situation looks like on these two stock market indices. When it comes to the French index, a fresh ATH was painted last week. Nevertheless, the price did not manage to stay above the high from May 2018. Currently, the price consolidates between 5535 and 5625 point handles. Until the range is broken, sideways move is the base case scenario. In case a break higher occurs, no resistance can be spotted anyway nearby and the market may continue to move into uncharted territory.. On the other hand, breaking below the aforementioned range could see the decline deepen to as low as 5240 pts.
Source: xStation5
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Looking at the technical situation on the DE30 market, one can spot signs of indecisiveness. Although the upward trend is being continued, the price failed to break above the high of 12,590 points last week. A moment of sideways trading between 12,200 and 12,590 point handles cannot be ruled out for now. Pulling back below the support level at 12,200 points could be prelude to testing the 12000 points handle and potential collapse of the uptrend structure. . On the other hand, smashing through the resistance at 12590 pts could trigger an attempt to paint new YTD highs.
Source: xStation5
Looking at the lower time frame - H4, one can see that the price is moving within the local upward channel.. Bears managed to defend the resistance level at 12445 pts for now. Only breaking above it could lead to a movement towards the 12 590 points handle mentioned in the previous paragraph. On the other hand, breaking below the trend line could be a signal for bears and lead to an attack on support at 12,200 points. However, with economic calendar being almost empty today, Monday’s session should see rather low volatility.
Source: xStation5
