The German DAX has staged a strong recovery back above the 9,000 level after the US Federal Reserve announced a massive open-ended bond buying scheme earlier this week.
Germany 30 analysis highlights that the recent recovery may move towards the 10,270 level, which is former key support turned resistance over the medium-term.
Germany 30 medium-term price trend
The Federal Reserve’s massive QE bond-buying programme has helped equity markets recover and sent the German DAX back above the 9,000 level.
Germany 30 technical analysis shows that the index could target above the psychological 10,000 level and test a former key medium-term support area turned key resistance.
The daily time frame shows that a huge inverted head-and-shoulders pattern was invalidated recently after bears broke below the 10,270 level.
This is likely to be a key area where price may gravitate to over the next few days, following the bounce from the 7,960 level.
It is noteworthy that the pattern has yet to reach its overall bearish target, around the 6,200 level. Sellers may be waiting around the 10,270 area.
Key resistance for the German DAX above the 10,20 level is found at the 11,000 and 12,400 levels.
Germany 30 short-term price trend
Germany 30 technical analysis shows that the index has a strong bullish short-term bias while price trades above the 9,150 level.
The thirty-minute time frame is showing that a bullish inverted head-and-shoulders pattern has been activated across the lower time frames.
The neckline of the pattern is found around the 9,175 level and implies that the index could rally toward the 10,300 area.
Furthermore, the mentioned time frame also shows bullish MACD price divergence extending towards the 12,000 level.
Watch out for a powerful rebound in the possible German DAX over the short term if bulls gain traction above the 10,270 level.
Germany 30 technical summary
Germany 30 analysis shows that the index could rally towards the 10,270 level over the short term. A powerful rally towards the 12,000 level could occur if the 10,270 level is overcome.