The iShares Core DAX UCITS ETF traded in a consolidative manner on Thursday, staying between the 118.60 support and the resistance of 119.75. Overall, the ETF is trading above the upside support line drawn from the low of January 28th, and thus, we would consider the short-term outlook to be positive for now.
A clear and decisive move above the 119.75 barrier may pave the way towards the ETF’s record peak of 120.82, hit yesterday. However, a break above that record is needed to add more credence to the bullish case. This will confirm a forthcoming higher high on the daily chart and will place the price into unchartered territory.
Taking a look at our short-term oscillators, we see that the RSI turned up again and just poked its nose above its 50 line, while the MACD, although below its trigger line, lies fractionally above zero and shows signs of bottoming as well. Both indicators suggest that the price may gain more upside speed soon, which enhances the case for more advances.
In order to abandon the bullish case and start examining a bearish reversal, we would like to see a clear dip below 116.20, marked by the low of February 26th. The price would already be below the aforementioned upside support line, while the dip below 116.20 would confirm a forthcoming lower low on the daily chart. This may open the way towards the 115.10 zone, marked by an intraday swing low formed on February 1st, the break of which may trigger extensions towards the 113. 97 area, which is slightly above the low of January 29th.
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