- German 40 index hits all-time high
- Uptrend shows ongoing strength, but a pause is likely
The German 40 index has been having an exceptional performance so far in 2024, gaining more than 10% to unlock an all-time high of 18,510 on Wednesday.
The ongoing positive trend has yet to show any cracks, but with the price marking its 10th consecutive green week near the upper Bollinger band and the momentum indicators pointing to overbought conditions, the bears could be around the corner.
If the rally continues, resistance could pop up within the 18,953-19,000 territory, where the ascending trendline which connects February’s and March’s highs is placed. Additional gains from there could touch the resistance trendline from August 2022.
Should downside pressures resurface, the 18,000 round mark and the 20-day simple moving average (SMA) could attempt to stop the bears ahead of the support trendline at 17,740. A correction lower could halt immediately within the 17,470-17,335 constraining area, where the 50-day SMA is placed. Yet, only a drop below the 17,000 number would neutralize the medium-term outlook.
The ascent in the German 40 index seems stable overall, but there is a possibility of profit-taking following the recent record highs.
