Saanj on Twitter asked me for my thoughts on the DAX so here is a brief update on what I’m seeing across the DAX charts.
Monthly: the bigger picture:
The DAX has completed the ascending triangle breakout that triggered back in 2013 and this gave the predicted 4,700 point move. The index has been sniffing ‘new air’ since that breakout and any continued move higher will be much the same….uncharted territory!
The 13,000 whole-number level seems to be psychological resistance for now and is the level to watch for any new make or break activity:
Marking this 13,000 level as horizontal resistance brings a new ascending triangle in to view with a height of 9,000 points giving a target up near 22,000:
I do note that placing Fibonacci extension on the last complete swing high move since 2009 though gives a 161% extension near the whole-number 20,000 and so this would be a target to keep in focus as well.
DAX weekly: the DAX has been in an uptrend since 2009, however, trends do not travel in straight lines forever and so, even if there is to be longer-term continuation, a bit of a dip could well evolve before then. I note that the 50% retracement fib of that swing high move dovetails in with the previous trend line breakout level of 8,300 and so that would be an area of interest if any weakness evolved:
DAX daily: there are lots of support trend lines to keep in focus along with the 13,000 resistance zone:
Summary: the DAX has been in an uptrend since 2009 and, even if bullish sentiment continues, some pause or pullback could evolve as trends do not travel in straight lines unabated. The 13,000 level is the resistance zone to watch for any new make or break:
- Continuation would bring 20,000 and 22,000 into focus.
- Any weakness would bring the previous breakout zone of 8,300 back into focus.