GER40 holding above 25000, but for how long?

asked by u/lucia.weber · 4d · 3 answers

Watching $GER40 this morning, we're currently hovering around 25127, right off the daily high of 25151. It's an interesting spot because 25000 has acted as a pretty solid psychological and technical support for a while now. The concern I have is the repeated tests of that level. Each touch erodes its strength a bit. If we see a clear break and sustained close below 24985.5, which was today's low, I'd consider that a significant invalidation of the current bullish sentiment holding this range. My read is we might be building for a move, but the direction is still uncertain, contingent on how that 25k support holds up under pressure later in the session or week.

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Top answers

  • u/rwilliams· 1 pts· 4d

    I'm with you on the concern about repeated tests. It feels like a stretched rubber band. Are you looking at any particular economic indicators or news that might be putting pressure on it right now?

  • u/kaitoyang· 1 pts· 4d

    It's a valid point about the repeated tests. Support levels, psychological or otherwise, tend to weaken with each re-test. Are you seeing any particular macro factors that might be contributing to this persistent pressure, or is it more technical in your view?

  • u/marco_w· 1 pts· 4d

    That's a good point about repeated tests eroding strength. I've been noticing that as well. Do you think the upcoming ECB meeting could be the catalyst for a definitive move, one way or another?

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