The German 30 Index has moved up to test the 12600.00 area today but has had difficulty holding onto those gains. After selling off in the middle of June, the index bottomed at 12100.00 on June 28th and began retraced the move lower. Solid support can be seen below 12150.00 but a further move lower in the coming days can see this area tested particularly if the current bearish rising wedge pattern shown here on the chart is to be believed. A break of the 100 period MA at 12485.00 triggers the wedge and price action would look to test lower to the 50 period MA at 12446.00 and the 12375.00 level. The falling red trend line has dropped to the 12300.00 level and may halt any decline.
Resistance at the wedge top comes in at 12623.60 and can point to a retest of 12650/12700.00. A break above here puts 13000.00 into view followed by the ceiling resistance at 13200.00. As earnings season kicks off bulls will want to see positive results that can take the index back to 13600.00 and new all time highs beyond.
