DAX40 PERF INDEX - Will German DAX 30 Surpass Above the Downtrend Line? - 08/08/2016 (GMT)

The German DAX 30 surged more than 7% during last month and is still looking bullish in the short-term, following the aggressive rally from the 9306 strong support level. The index is moving towards the descending trend line, which started back in May 2015.

The price is currently approaching the downtrend line and a successful penetration of that obstacle will open the doors for a new trend. A break of the aforementioned obstacle and the 10520 resistance level will expose the price until the next resistance level at 10880. The 100-weekly SMA provided significant resistance to the index last week but the price surpassed above it the last hours. On the daily chart, the three SMAs (50-SMA, 100-SMA, 200-SMA) are moving below the current market price. Also, the technical indicators are moving in a bullish territory endorsing our thought for a further upside potential move. The MACD oscillator is rising with strong momentum while the RSI indicator is approaching the 70 level.