DAX 30 Technical Forecast – 2011 Trend-line to Come Back into View Soon

DAX 30 Technical Highlights:

  • DAX turns down from HS neckline again
  • 2011 trend-line test could be right around the corner
  • A hold keeps sellers at bay, a break could lead to big losses

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

DAX bottled up, but that could change relatively soon

Last week, I referred to the DAX as ‘caught between the lines’ because of the neckline of the big-picture head-and-shoulders pattern acting as resistance while the 2011 trend-line remains a big line of support. The turn down from the neckline after another gap above it yesterday was fierce, helping to reinforce the area from 11600 up to 11675 as strong resistance.

The 2011 trend-line will quickly come into focus on further weakness, and while the thinking on this end is that at some point it will break due to forces from the broader topping pattern, it is to be treated as support for as long as it holds.

From a tactical standpoint the trend-line doesn’t make for a great spot necessarily to get long given the general

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