DE30: Strong correction after strong rally

The German benchmark index reaches a new weekly low.

D1 chart

The DE30 continues to fall on Thursday, testing the 78.6% retracement of the rally that started in early July for the second time this week. The index hits its lowest level in more than a month, narrowing the gap to the low for the year to around 2.5%. Selling pressure increased after Monday's daily high (12,942 points) could not be broken.

Source: xStation5

H4 chart

The downward trend was confirmed by a lower low at midday today. The next price targets that the bears could focus on are at 12,417 and 12,366 points. A break below the second support (annual low) would confirm the medium-term downtrend and trigger stronger losses. To end the short-term downtrend, resistance at 13,154 points must be overcome.

Source: xStation5

Maximilian Wienke, CFTe
XTB Germany