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CFD News: GER30 could be starting a new leg higher

Published: 17.05.2022
by Joseph Jeffriess

Today we are looking at the GER30 daily as buyer momentum continues to drive forward this week, with price breaking the medium-term downtrend in today’s session.

It’s been a  decent week so far for stock indexes. Buyers continue to hold sway with another solid rally in today’s session. Buying is widespread across the CFD indexes and is part of a broader risk on the move that has seen risk currencies and crypto coins pushing into the green.

The GER30, after setting its last LL in March, has shown us a bullish signal with a new HL in May. Since that point, we have seen the current rally test and break the medium-term downtrend. These are good signs from buyers at the moment, but we would like to see the next step taken with a new HH put in. We would also like to see that HH hit above the last LH, which would continue to confirm the trend break. If buyers can achieve this, we would then like to see a new HL maintaining a new normal short-term uptrend.

14,555 could come in as resistance if reached, but new HLs after retracements will keep the idea in play. A failure to set a new HH and a slip back into the downtrend is a worry. A new move lower that breaks the last HL basically discounts the bullish signs we are watching and discussing above.

GER30 D1 Chart

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