DAX Technical Highlights:
- DAX cleared by way of 12550/600 resistance
- Challenging 200-day MA; gaps, t-line forward
- Bullishness ought to prevail within the short-term
On Tuesday, the DAX cleared by way of the zone of resistance within the 12550/600 space, furthering the breakout in yesterday’s commerce. This has the 200-day and gap-fills in focus. There are two gaps which may quickly come into play; one at 12834 from 6/18 and the opposite at 13010 from 6/15.
The second hole resides roughly across the trend-line off the document excessive. This trend-line has a good quantity of significance given it has two key connecting factors from May after which June. A rally to that time would doubtless face opposition and be a great spot to search for stalling momentum.
Looking decrease on a dip, the ‘previous resistance turns into new assist’ rule applies right here. Any dip down into the 12600/550 area and maintain will likely be considered as a possible backstop for would-be longs. A break by way of and we might must readjust and maybe downgrade the significance of this worth band courting again to February.
Broadly talking, the potential for a ‘head-and-shoulders’ top courting again to June of final 12 months continues to be intact. However, if the DAX begins to actually develop legs and run previous the trend-line after which above the May excessive, this state of affairs could be in critical jeopardy as symmetry of the sample could be significantly dented. We’ll focus on this big-picture state of affairs at a later time ought to it grow to be related.
For now, focus is on just lately secured assist and obstacles which lie forward. It appears just like the DAX desires to trip a bit increased for now, then maybe roll over as soon as the summer time rally has run its course.
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DAX Daily Chart
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—Written by Paul Robinson, Market Analyst
You can observe Paul on Twitter at @PaulRobinsonFX