DAX 30 Technical Outlook – Caught Between the Lines

DAX 30 Technical Highlights

  • DAX bounce failed above neckline of HS pattern
  • Focus could soon be back on 2011 trend-line
  • Trend and market tone remain in favor of sellers

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

DAX bounce failed above neckline of HS pattern

On Friday, the DAX gapped strongly higher, but with the gap came a crew of sellers which pushed the index back lower. The gap higher initially had price above the neckline of the head-and-shoulders (HS) pattern in place since June of last year, but on a closing basis price stayed right at the key line of resistance.

This has focus lower now, with a few gaps along the way to fill towards another test of the 2011 trend-line. It would certainly be another crucial test as the 2011 trend-line following the break of the broad HS pattern is the only line of support keeping the DAX from falling much further down the hole.

Even if we were to see some stabilization here and the DAX trade higher above the neckline, the trend is generally negative

Article source: https://www.dailyfx.com/forex/technical/home/analysis/ger30/2018/11/06/-DAX-30-Technical-Outlook-Caught-Between-Major-Thresholds-PRtech.html