The GER30 index put breaks on Wednesday’s sell-off and geared up to move-off one-month lows but the 20-period simple moving average (SMA) in the four-hour chart did not let the recovery to continue.
In the short-term the bulls could revisit the 20-period SMA if the RSI and the MACD keep improving. Any significant step higher and above the 38.2% Fibonacci of 12,279 of the downleg from 12,661 to 12,043 could open the door for the 50% Fibonacci of 12,534 and the 50-period SMA. Crawling further up, the next major resistance could be the 12,465 barrier.
Otherwise, a reversal below the 23.6% Fibonacci of 12,189 would shift attention towards the 12,097 support level, while a sharper decline may lead the market down to 11,825, a strict obstacle during the 2019 spring period. It is also worth noting that the 50- and the 200-period SMAs have already printed a bearish cross, which if retained, could increase speculation over a down-trending market.
In brief, the GER30 stock index is likely to maintain bullish momentum in the short-term, but a closing price comfortably above the 20-period SMA is required for the rally to get more legs.
