The German Index has gapped higher this morning, creating new all-time highs for the first time in 2018. The rally stalled at the 13600 resistance level and paused there for much of the early morning session. It then moved lower to test support around the previous high. This still leaves a gap on the chart from yesterday’s close. Whether the market decides to fill this gap or continue higher regardless is yet to be decided. However, the creation of a new high on a gap up is bullish on face value. This would mean breaking above 13600.00 and targeting 14000.00.
Support can be found at the rising blue supporting trend line, which has been retested today as support, but a drop below this line puts further gains into question. Further support is located at 13500.00, followed by 13426.80 and the red trend line at 13400.00. From 13350.00 to 13200.00 there is a supportive zone containing the moving averages and the previous consolidation area, with the 200 MA on the 4-Hour chart at 13200.00. Below this, the channel bottom at 13100.00 provides support.
The US Index has also gapped higher overnight to new all-time highs at 26322.9, following news that the Senate has resolved the issues to end the US Government shutdown. This morning, the price has drifted back down to yesterday’s closing level and confirmed support at 26155.00. Further support below the current price level can be found at the minor trend line at 26115.00, followed by 26090.00. The rising support trend line and the 100-Hour MA are positioned just above 26050.00 the psychological support at 26000.00, which was where price spent much of the European session yesterday before the US open. The 200-Hour is at the important support level of 25879.50. Any negative reaction from the news surrounding Trade Tariffs could see a pullback to the 25700.00 level.
