The GER30 index has experienced a pullback from the latest highs at 13426.80. After yesterday’s selling pressure it has failed to retrace the move and has instead produced a sideways consolidation pattern. The channel has been formed, and despite breaking down below the channel bottom at the end of 2017, price action returned to within 20 pips of the channel top at the start of this week. The previous high of 13350.00 created a level of support that, when broken yesterday, led to a further 125 pip sell off to 13224.00.
Today, German political parties are again meeting to discuss forming a coalition to govern the country. News from these talks can drive the index to new highs or lows so it will pay to be alert to reports from the talks. Support can be found close to current price action in the form of the 50 4-Hour MA at 13222.60 and the 13200.00 level, followed by the 100 4-Hour MA at 13167.5. The 200 period 4-Hour MA is located at 13126.20 and has nearby trend line support at 13111.00. The rising trend line from the daily chart is at 13037.40.
Silver has been ranging between 18.201 and 15.611 since July 2017. This has forced the Daily moving averages into a tight zone centred around the 100-Day MA at 16.782. The price is currently attempting to stay above the 200-Day MA at 16.911, with trend line resistance overhead at 17.256. If the price were to move above here, we could see a continuation of the bull’s drive to 17.470, followed by 18.000 and the recent high from the 8th of September at 18.200.
Support below is provided by the 50-Day MA at 16.702 and the rising trend line at 16.644. The low from the 6th of October is supportive at 16.308, followed by the December low of 15.611.