DAX40 PERF INDEX - is Trading With Weak Momentum The Last Week - New High is Exp - 05/01/2017 (GMT)

The German DAX 30 index soared more than 3% during the last week and hit a fresh high near 12520 price level. On a short-term basis, the index is developing in an ascending move since June 24th of 2016, supported by rising lows and rising highs. Currently, the index is consolidating within the 12386 – 12520 sideways zone.

From the technical point of view, the price recorded the first positive week snapping three losing streaks in a row. Last week’s first round of the French Presidential elections pushed the price higher as it opened with a gap-up. Despite that, an aggressive sell-off below the 12386 support level will open the way for the 11840 barrier which is slightly below the 100-daily SMA, but the price needs to slip beneath the 50-daily SMA. The next level to watch is the rising trend line, near 11460. On the other hand, a bullish scenario is also possible. A run above the previous high will expose the European index to a fresh high. The technical indicators seem to be in contrast. The RSI indicator plunged below the 70 level but is moving slightly higher with weak momentum. The MACD oscillator is moving higher above its trigger and zero lines whilst the stochastic oscillator created a bearish crossover with its moving averages in the overbought path signaling bearish movement.