Germany 30 Technical: A potential minor corrective decline looms – heochaua

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<li><strong>Short-term RSI momentum indicator has flashed out bullish exhaustion condition after 6 consecutive weekly positive closes.</strong></li>
<li><strong>At the risk of minor corrective decline sequence below 16,910 key short-term resistance.</strong></li>
<li><strong>Intermediate supports rest at 16,590 and 16,440.</strong></li>
</ul>
<p>This is a follow-up analysis of our prior report, <em>“Germany 30 Technical: New intraday record high, short-term bullish trend intact” </em>published on 6 December 2023. Click <a href="https://marketpulse.com/indices/germany-30-technical-new-intraday-record-high-short-term-bullish-trend-intact/kwong">here</a> for a recap.</p>
<p>The <a href="https://www.oanda.com/sg-en/trading/indices/">Germany 30 Index</a> (a proxy for the DAX futures) has managed to soar towards the 16,780/850 resistance zone as highlighted in our last analysis and printed a fresh all-time high of 16,829 yesterday, 12 December.</p>
<p>Overall, the major uptrend phase from the October 2022 low of 11,795 remains intact with its major resistance zone at 17,780/18,170 (see Fig 1).</p>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-02-35.png"><img loading="lazy" class="alignnone wp-image-809041 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-02-35-1024×599.png" alt="" width="700" height="409" srcset="https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-02-35-1024×599.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-02-35-300×175.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-02-35-768×449.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-02-35.png 1489w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 1: Germany 30 long-term secular trend as of 12 Dec 2023 (Source: TradingView, click to enlarge chart)</p>
<p><strong>At risk of minor corrective decline after 6 consecutive weekly positive closes</strong></p>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-12-07.png"><img loading="lazy" class="alignnone wp-image-809042 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-12-07-1024×594.png" alt="" width="700" height="406" srcset="https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-12-07-1024×594.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-12-07-300×174.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-12-07-768×446.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/12/DE30EUR_2023-12-12_17-12-07.png 1501w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 2: Germany 30 minor short-term trend as of 12 Dec 2023 (Source: TradingView, click to enlarge chart)</p>
<p>In the shorter term, its medium-term uptrend phase in place since the 27 October 2023 low of 14,586 has reached overstretched conditions as it has recorded six consecutive weekly positive closes.</p>
<p>In addition, current price actions have almost reached the upper boundary of the medium-term ascending channel with a bearish divergence condition being flashed out by its hourly RSI momentum indicator at its overbought region yesterday, 11 December.</p>
<p>These observations suggest an increasing risk of an impending minor corrective decline sequence with 16,910 as a key short-term pivotal resistance and break down below 16,735 near-term support sees the next intermediate supports coming in at 16,590 and 16,440.</p>
<p>However, a clearance above 16,910 negates the bearish tone to expose the next intermediate resistance at 17,100.</p>