The German 30 Index was propelled higher yesterday as the Euro weakened in response to the ECB decision to taper its QE purchases. The index broke above resistance at 12950.00 and 13000.00 before falling short of the 13200.00 level. It has come off the highs this morning and found support at 13100.00. It remains to be seen if this rally can be sustained as US equity markets were mixed yesterday and remain depressed this morning. Traders will be watching for a break of the 13200.00 area which points to a moved back to the highs at 13600.00.
Support below 13100.00 comes in at 13060.00 followed by 13000.00. A drop under this level would signal a reversal of the move yesterday and a swing towards a more bearish outlook. Supports under 12900.00 take the form of the moving averages with the 200 period MA at 12814.40. The 12750.00 level represents the median of the recent range extending down to 12607.00 and 12544.00. A move down out of this range can point to further declines as the summer progresses.
