German DAX: Settled Below Resistance

The German DAX index succeeded in achieving the negative outlook, as we expected, touching the first target to be achieved during the previous analysis, located at 13,850, recording the lowest price of 31,843.

On the technical side today, and with a closer look 60-minute chart, we find the 50-day moving average that continues to pressure the price from the top, in addition to the price remaining below the previously breached support level converted into a resistance level at 13,950/13,960.

Consequently, we may witness downside movements during the coming hours targeting 13,870/13,850, knowing that breaking the latter extends the index’s losses, opening the way directly towards 13,810.

Activating the bearish scenario depends on trading remaining below 13,960, and its breach will lead the index to an upside path with a target of 14,000 and may extend later towards 14,040. Note: The level of risk may be high.

S1: 13870	R1: 13955
S2: 13820	R2: 13980
S3: 13780	R3: 14040