12/13/2017 – 09:30 a.m.: For the time being, there seems to be no escape from the dominant trading range between 12,860 and 13,160 Dax points. At the moment the stock market barometer stalks its way to the top again. It will be interesting to see if a potential breakout attempt will come to a successful end this time. For around four weeks now, the German benchmark index has been trending sideways within the trading range concerned. Between the above-mentioned lower limit and the psychologically relevant mark of 13,000 points, there are several chart technically significant support factors that have so far served as a solid catchment zone.
In addition to the high in June of this year, this price region also includes the 38.2 percent Fibonacci retracement, based on the upward movement observed since the beginning of September. In addition, the MA50 is currently running at 13,080 points, representing an additional upstream support. The 23.6 percent fibonacci retracement can be localized just above this level. The said staggered support region should prevent – at least from a chart-technical point of view – a major disaster on the underside.
To date, every race has failed on the resistance zone at 13,160 points. A significant move above the resistance level of 13,160 would open up upward potential to the former record highs, also from the point of view of technical analysis. The bullish signals from Stochastic Oscillator and MACD indicator give cause for hope. Whether or not a rally will actually take place at the end of the year is not least due to monetary policy on both sides of the Atlantic. Three central bank heavyweights, the Federal Reserve, the Bank of England and the ECB, will publish their key interest rate decision in the coming days.
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