DAX40 PERF INDEX - Bullish Bias Will Continue - 01/30/2017 (GMT)

The German index DAX30, last week, escaped from the sideways trading area - between 11,500 and 11,695 - has been since the beginning of the year, and rose to the upside until the 11,895 resistance level. However, this week opened with a small gap to the downside which is likely to cover it in the next couple of days.

The index is trading above all of the three SMAs (50, 100 and 200) on the daily chart and our first scenario is further rising to challenge again the 11,895 barrier. If it manages to penetrate it to the upside, we may see some solid gains until the 12,060 resistance barrier. On the other hand, if the index slips below 11,695, the next support level is 11,500 psychological handle, slightly above the 50-SMA on the daily chart. MACD oscillator crossed above its trigger line which is a bullish signal, while the RSI indicator is traded near 70 level.