The DAX equity index remains in a bearish technical setup, in line with the prevailing downward trend. Recent price action is forming a corrective pullback, suggesting temporary relief within a broader negative structure.
Key Technical Levels:
Resistance: 23,700 (previous intraday consolidation zone)
Support levels:
22,880 (initial target)
22,640
22,500 (longer-term support)
Bearish Scenario:
If the index rallies toward the 23,700 resistance and faces a rejection, this would likely confirm a continuation of the downtrend. In that case, downside momentum could accelerate toward the 22,880, 22,640, and potentially 22,500 support zones over the longer term.
Bullish Alternative:
A breakout above 23,700, confirmed by a daily close, would invalidate the bearish outlook and shift momentum in favour of the bulls. This would open the door for a move toward 23,920 and possibly 24,100 resistance.
Conclusion:
The bias remains bearish unless the DAX can break and close above 23,700. Traders should watch for price action around this key level to confirm trend direction. A rejection favors short positions targeting lower support levels, while a breakout invites a shift to a more constructive outlook.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Key Technical Levels:
Resistance: 23,700 (previous intraday consolidation zone)
Support levels:
22,880 (initial target)
22,640
22,500 (longer-term support)
Bearish Scenario:
If the index rallies toward the 23,700 resistance and faces a rejection, this would likely confirm a continuation of the downtrend. In that case, downside momentum could accelerate toward the 22,880, 22,640, and potentially 22,500 support zones over the longer term.
Bullish Alternative:
A breakout above 23,700, confirmed by a daily close, would invalidate the bearish outlook and shift momentum in favour of the bulls. This would open the door for a move toward 23,920 and possibly 24,100 resistance.
Conclusion:
The bias remains bearish unless the DAX can break and close above 23,700. Traders should watch for price action around this key level to confirm trend direction. A rejection favors short positions targeting lower support levels, while a breakout invites a shift to a more constructive outlook.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.