Summary:
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DAX (DE30) moves back below its 200WMA
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German index defends the 50% retracement
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DAX (DE30) remains within a descending channel
The German indesk has come back to falls in recent weeks. In a weekly chart we may notice that the price has moved below its 200WMA. From this point of view the lows seen in the vicinity of the 50% retracement could be viewed as the major support. What’s more, this line is supported by the 113.6% retracement of the move between February and March 2018. If these levels are broken down, the price may move toward the 61.8% localized nearby 10550 points.
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Source: xStation5
The daily chart a sequence of lower lows and highs remains intact confirming bears’ dominance in the medium-term. After a retest of the lower limit of the wedge the price resumed falls toward the lows made in October. Conclusions that might be drawn from this interval are similar to those seen in the weekly chart. Therefore, bears should prevail if the bearish sequence continues unfolding and the price fails to move back into the wedge again.
Source: xStation5
All gains seen at the beginning of Monday’s trading have been already erased. The German index has run into an obstacle around the middle of 50-period MAs. The price keeps moving within the downward channel with the lower limit falling on 11180 points - the lows from the end of October. Once the price breaks above the upper limit of the channel bulls could attempt to test 11850 points, the target stemming from the flag pattern.
Source: xStation5
