- GER 40 looks strongly bullish
- However, RSI suggests overbought market
As the 2023 is coming to an end, the GER 40 index added more than 17% after the bounce off the 14,600 support level and the 100-week simple moving average (SMA). The price reached a new high near 17,003.90 in the previous week and lost some of its upside momentum, falling lower.
According to technical oscillators, the RSI is flattening marginally below 70, suggesting a weakening positive bias; however, the MACD is extending the bullish movement above its trigger and zero lines.
If the market extends the bullish action, then the index could rest near the next psychological numbers such as 17,100 and 17,200.
In the negative scenario, a bearish correction could lead the price until the previous high of 16,530 ahead of the 50-week simple moving average (SMA) at 15,710. Beneath that, the long-term ascending trend line at 15,200 may halt the bearish wave before meeting the 14,600 bottom again.
All in all, the GER 40 index is looking strongly positive in the broader outlook and only a decline below the rising trend line and the 200-week SMA at 14,300 may switch the outlook to negative.
