DE30: Bearish trend structure in H4

The German benchmark index is narrowing the gap to the low for the year to around 180 points.

W1 chart

The DE30 continues its decline this week, heading for the low for the year reached in March at 12,423 points. In the previous week, this support was successfully defended by the bulls, but the more often it is tested, the higher the probability of a breakout. If the area is abandoned, the index could approach the low at 11,315 points. 

Source: xStation5

H4 chart

There are two possible interpretations. The bulls are hoping for a trend reversal after the false breakout at the low for the year and the rise above the high at 12,947 points. The bears, on the other hand, see the break of the short-term structure (internal structure of the upward impulse) and could expect the start of a new selling wave.

Source: xStation5

Maximilian Wienke, CFTe
XTB Germany