The German 30 stock index (cash) has been stubbornly testing the 12,960 key resistance level over the past four days as the strong ascending trendline has been nicely supporting the market.
In momentum indicators, the RSI managed to gain additional ground in the bullish area, while the MACD has slowly risen above its red signal line, both hinting that the short-term risk is still tilted to the upside.
Whether the index can find new buyers now, may depend on the 12,960 barrier, a break of which could be a prerequisite for the index to challenge the 13,575 restrictive area before hitting the record high of 13,826. Beyond the latter, the 14,000 mark could be of psychological importance.
In the negative scenario where the price retreats below the trendline, the 20-day simple moving average (SMA) currently around 12,660 may attempt to block the way towards the 200-day SMA and the 12,000 support area. Beneath the latter, the 61.8% Fibonacci of the 13,826-7,961 bearish wave at 11,585 would be closely watched as any break below this point would mak a lower low, violating the upward pattern started from the 7,961 bottom.
In short, the GER 30 index continues to send bullish signals, though for the market to sustain its strength in the short-term, the 12,960 hurdle should give way first.
