GER40 cfd and EU50 cfd levels included in this article

DAX has bounced strongly after last week’s sell-off that took the index down to 17,000. During the sell-off a couple of gaps were created. Gaps that now are resistance areas.

The most important gap is currently being tested. DAX opened this morning above the lower band of the gap at 17,885 at the 0.618 retracement of the sell-off.
 But to close the gap a daily close above 18,083 is required.
If that occurs DAX is likely to push higher to 18,542 resistance.

If DAX fails to close the gap and instead slides back closing below 17,884 i.e., below the lower band of the gap DAX is likely to resume downtrend. If then closing below 17,620 there will be potential down to 17,000 possibly lower.

The strength indicator RSI is showing negative sentiment and is required to close back above 60 threshold to reverse that. If failing to do so and inst4ead slides back below 40 it will support the bearish outlook for DAX

 

Source all charts: Saxo Group
GER40 cfd chart: 

EuroStoxx 50 has bounced 0.618 of the 3-4 day’s sell-off trading just below the 200 daily moving average. A close above could push the index to 0.786 retracement and resistance at around 4,907.

If sliding back closing below 4,394 the downtrend is likely to resume with a likely bearish move to last week’s lows

Similar to DAX the EUstoxx50 strength indicator RSI is showing negative sentiment and is required to close back above 60 threshold to reverse that.

If closing back below 40 it would be a strong indication of the downtrend to resume

EU50 cfd: