Few like European equity, but they should - GER40 to new highs

Few like investing in Europe at present, and while France remains constrained by political risk, the German equity index (GER40) is doing everything right from a technical and price action perspective, and positioning for further upside seems the play.

Having held the 19k support level throughout November, the bulls have built a solid platform to progress, taking the index through downtrend resistance & backed by solid range expansion and the index closing on weekly highs.

The ATHs are now being tested, subsequently, a closing break through 19.679 would encourage momentum accounts to chase the upside as we roll into the ECB meeting (12 Dec) and year-end.

A daily close below the 5-day EMA would be a signal to turn cautious, flipping to outright shorts on a closing break of 19k. But for now, long and strong seems the higher probability position.

Good luck to all.