The German DAX recently suffered a strong upside rejection, after price failed to move past the April monthly trading high, around the 10,330 level.
Germany 30 analysis shows that bullish MACD price divergence is warning of more medium-term upside in the index.
Germany 30 medium-term price trend
The German DAX has staged a minor technical pullback after the index surged higher on Monday alongside other global indices.
Germany 30 technical analysis shows that bulls could start to target the index’s 200-day moving average, around the 12,100 level, if the April high is breached.
The daily time frame shows that price is starting to stabilise above the 50 per cent Fibonacci retracement of the current 2020 trading high to low.
Should price continue to stabilise above the 50 per cent Fibonacci level then the index could rally towards the 61.8 Fibonacci retracement level of the mentioned sequence at 11,595.
Once past the 11,595 level, the German DAX’s 200-day moving average offers the strongest form of technical resistance, around the 12,100 level.
Germany 30 short-term price trend
Germany 30 technical analysis shows that the index has a bullish bias while price trades above the 10,440 level.
The four-hour time frame is showing that bullish MACD price divergence is still present until the 13,000 level.
It is possible that a breakout above the April high could cause the German DAX to surge higher, and reverse the mentioned bullish price divergence.
A bullish inverted head-and-shoulders pattern is also starting to take shape across the lower time frames.
The inverted head-and-shoulders pattern is projecting a potential advance towards the 12,500 level if the 11,330 resistance level is overcome.
Germany 30 technical summary
Germany 30 analysis shows that bullish MACD price divergence is pointing to a possible upcoming rally above the 12,000 level. A breakout above the April monthly high would encourage bulls.