Germany 30 (DE30EUR) Crumbles to the Oversold Region Creating a Buying Opportunity

Germany 30 (DE30EUR) Crumbles to the Oversold Region Creating a Buying Opportunity

Key Resistance Zones: 13600, 14000, 14400
Key Support Zones: 11200, 10800, 10400

Germany 30 (DE30EUR) Long-term Trend: Bearish
Germany 30 is in a bear market. The index makes an initial upward move to a high of 14000 before nose-diving to its low of 10354. At this price, the market reached the oversold region of the market. However, since the market is oversold it is assumed that the selling pressure has been exhausted.

What is outstanding is the emergence of buyers in the oversold region. New buyers are to push the index upward. The current support at 10354 is likely to hold because the selling pressure has been exhausted. More so, buyers are expected to emerge.

DE30EUR – Daily Chart

Daily Chart Indicators Reading:
Germany 30 has fallen into the oversold region below 20% range of the daily stochastic. This implies selling has been overdone. In the oversold region, the market is said to be in a strong bearish momentum.

Germany 30 (DE30EUR) Medium-term Trend: Bearish
On the 4- hour chart, the index has been in a sideways move since January 2019 before the downtrend. The price breaks the upper price and then it makes U-turn up downward. The downward move was shocking it reaches the low of 10354.

DE30EUR – 4 Hour Chart

4-hour Chart Indicators Reading
The index is currently at level 15 of the Relative Strength Index period 14. RSI is indicating that DE30EUR is in the oversold region. In this case, buyers are likely to emerge in the oversold region. The 21-day SMA and the 50-day SMA are sloping horizontally.

General Outlook for Germany 30 (DE30EUR)
DE30EUR has dropped shapely into the bottom of the chart. Currently, the index is in the oversold region of the market. The bulls `are expected at the oversold region to push the price upward. Nonetheless, the index can stay behind in the oversold region if buyers fail to emerge.

Instrument: Germany 30 (DE30EUR)
Order: Buy
Entry price: 10354
Stop: 10000
Target: 13700

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.