DAX 30 and CAC Technical Outlook: Long-term Support in Play

DAX 30/ CAC Technical Highlights

  • DAX trying to mount a recovery from HS neckline
  • CAC has big price support putting in a floor for now

For the intermediate-term fundamental and technical outlook for the DAX Euro, check out the recently-released 4th Quarter Forecasts.

DAX trying to mount a recovery from HS neckline

We’ve been discussing for a while now the possibility that the DAX is developing a major long-term topping pattern by way of a head-and-shoulders dating all the way back to June of last year. The big test is finally here, with the neckline coming under assault in recent days.

It’s to be treated as significant support until broken. As long as it can hold, then at the least the DAX will have a floor in it. Resistance isn’t far ahead in the near-term, the March low arrives around 11726. A break above will bring the September low at 11865 into play. The trend is firmly lower, making rallies at this time viewed as merely counter-trend moves.

Should a weekly close develop below the neckline, there is one more level of substantial support, or line in this case. The

Article source: https://www.dailyfx.com/forex/technical/home/analysis/ger30/2018/10/16/DAX-30-and-CAC-Technical-Outlook-Long-term-Support-in-Play-PRtech.html