DAX 30 and CAC 40 Technical Outlook – Bounces Face Immediate Resistance

DAX 30/ CAC 40 Technical Highlights

  • DAX bouncing from 2011 t-line, neckline test coming
  • CAC has big overhead resistance just ahead too

For the intermediate-term fundamental and technical outlook for the DAX Euro, check out the Q4 Trading Forecasts.

DAX bouncing from 2011 t-line, neckline test coming

The DAX traded down to the 2011 trend-line last week and found a low, but is immediately finding itself trying to test the neckline of the head-and-shoulders pattern dating back to last year. It’s a big test coming up. The gap that occurred on the neckline break will fill at 11524.

If the pattern is to hold its bearish potential, then the DAX is likely to turn down either right around the neckline or not long after a break above. Sometimes with these formations you will see a break above and then trade back below, and with 2011 trend-line just below the neckline it would be unsurprising to see this happen.

On a break back lower the 2011 trend-line will be up again and makes it a little tricky with it so close in proximity to the neckline. A clear break of the

Article source: https://www.dailyfx.com/forex/technical/home/analysis/ger30/2018/10/30/-DAX-30-and-CAC-Technical-Outlook-Bounces-Face-Immediate-Resistance-PRtech.html