Risk-off sentiment persists in the market after the weekend. Despite rebound attempts sellers still hold the initiative and the DE30 index remains below a key resistance level.
The technical situation on the D1 interval does not look good for the bulls. Last Friday, the key support zone, 12410-12530 points, was breached and is currently acting as a resistance. In line with the classic assumptions of technical analysis, setting a new minimum confirmed the long-term downtrend. Therefore, it seems that as long as the price remains below the aforementioned zone, further sell-off should be expected. If such a scenario materializes, the next support is located around 11,940 pts and coincides with external 127.2% Fibonacci retracement of the last upward correction. Another important support level can be found around 11,330 pts, which is marked with 161.8% external retracement and lows from October 2020. On the other hand, only a decisive break above the level of 12,530 pts, would hint at a potential trend reversal.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
DE30 interval D1. Source: xStation5
Looking at the lower timeframe, one can observe a steady downtrend. It is worth noting, however, that from the beginning of the week sellers have a clear problem with breaking below the 12,215 pts level, which acts as a key support in the short term. Should a break lower occur, the sell-off may deepen. On the other hand, if the current local consolidation turns into a larger upward correction, the first resistance to watch lies in the zone between 12470 pts and 12527 pts. It is marked with previous local lows, and the upper limit of the 1: 1 structure.
DE30 interval H1. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
