The GER30 (German Dax) CFD, posted a new high (pre covid high as well), 4 weeks ago and has been consolidating ever since, with little upside gains.
Looking at a 5-year weekly chart we can see that whenever the GER30 reaches 13600, the uptrend typically stalls and as a minimum, we see a multi-month corrective phase begin. Price excursions near or marginally above 13600 are accompanied by weekly MACD negative divergence. Again, we have that condition in place on the MACD histogram.
A confident break below 13200 will mark this price excursion above 13600 as a false dawn for GER30 bulls and likely a multi-month correction shall ensue. This fits nicely with our USD bull call as we are expecting a risk-off environment moving forwards.
1. GER30 (CFD) – Weekly Chart: The 13600 level, too hot to handle for GER30 bulls!
