Daily Technical Round-up: Will new support levels help the Germany 30?

Michael Baker, Monday, 3 February 2020

Technical Analysis


Pivot: 1.3165

Scenario 1: Sterling continues to show strength with a push up to the 7-Jan highs. Pushing past the 78.6% fib at 1.3214 then it's the yearly highs at 1.3266 and then the post-election highs from end of last year. 1.3285 is the 61.8% which has sellers. a move above here and through 1.3298/3320 then it's the 78.6% at 1.3388.

Scenario 2: Below weekly pivot and 50-day SMA between 1.3131/3064 then it's the trend support zone which has held since November. Below here we look for another push on the 38.2% fib and 23/24 Dec low at 1.2921/04. 1.2898/62 is another area which has seen a number of daily highs and lows. Multiple daily lows between 1.2826/.2768 followed by the 50% fib at 1.2737.

Chart: Daily chart showing recent push higher. If trend support zone breaks then we have some valid supports not much further lower.



Pivot: 1.1069

Scenario 1: Last week saw market push away from 1.1002/.0981 and test 50-day SMA at 1.1094. 50% fib at 1.1116, 200-day SMA at 1.1127. 1.1165/99 is the level buyers will want to beat and sustain a hold above. Dec-'19 highs at 1.1238, if we break here then it's the 23.6% fib at 1.1278.

Scenario 2: 1.1002/.0981 Is the level sellers will want to overcome. If that levels comes under pressure once again then we have the 78.6% fib and daily lows between 1.0957/41. Last year's low is at 1.0879.

Chart: Four-hour chart showing push up to 38.2% from major support.


Germany 30

Pivot: 13,031

Scenario 1: Market pushes out of trend channel, though 38.2% fib and finds support at 10-Dec low. If this fails to stop the current drop then we have 12,848/794 with a 50% at 12,733.

Scenario 2: Buyers will want to get this back up into the trend channel and target the weekly pivot at 13,087. 8.2% fib at 13,173 sits on a breakdown area with the 30 and 31 Jan highs coinciding with the 50% fib at 13,263. 13,379/407 is the short-term big resistance.

Chart: Four-hour chart shows break down and then support at 10th -Dec low.


Wall Street

Pivot: 28,461

Scenario 1: The target will be to get above pivots at 28,461, up here then there is a range which has seen trading bouncing up to 28,932 which is a 61.8% fib on multiple occasions.

Scenario 2: Wall Street saw losses last week with the prices stopping short of the 61.8% fib and 8-Jan lows. If this level fails to hold then it's the 28,000 psychological level which has supported some daily lows. Pushes below here are possible if the market is tanking, 27,400 is a major previous high back from Jul '19 which turned support in Dec.

Chart: Four-hour chart showing recent push down to 8-Jan low. Market looking to break back up above 28,456 and then start to push on short-term resistance at 28,932.

3 Dow

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