Removes from familiar level
The German index fell during Thursday’s trading session as the 15,800 level continues to be a major problem for the DAX. That being said, you could argue a bit for an ascending triangle, and furthermore, you can see that we have been in an uptrend for quite some time. Too, you can see that the 50 day EMA has been trending upward for quite some time and therefore worth paying close attention. If we fall below the uptrend line, it is very likely that we can go a little lower.
A fall below this uptrend line could open the possibility of a drop to the 15,000 level, which of course is a large, round, and psychologically significant number that many people would pay close attention to. Falling below, the market is expected to turn to the 200-day EMA. On the upside, if we were to break through that 15,800 level, then the market should head towards the 16,000. Going above the 16,000 level then opens up an even bigger move for the continuation of the long uptrend. term.
That being said, if we break down in the DAX, I can look at other indices in the European Union to start selling short, as the DAX usually outperforms others like CAC, IBEX, etc. . In this sense, the DAX is almost like a “long index only”, as are many indices in the United States. That being said, it can be used as an indicator for other indices.
On the upside, if we do break out, I think closing the market on an impulsive bullish candlestick would be the best thing that could happen, especially if we closed towards the higher end of the range, as the market would show a real conviction to go higher. high. So far, there is really nothing on this chart to suggest we should break down, but it should be noted that some other European indices look wobbly to say the least. With that in mind, I’ll be very careful to see if we get some type of bounce between here and this uptrend line that we can take advantage of.