German DAX – Bearish Alt-Bat Pattern in Play?

GER30

The German DAX remains technically trapped in a defined range, with resistance now under pressure at €23,960 and intraday support printed at €23,358. Notably, the index continues to reject the idea of reclaiming the weekly fractal resistance from March, forged at €23,478.

The index is forming a bearish at-bat pattern, with a PRZ projected at €24,075, corresponding to the 113% Fibonacci extension of the prior XA leg. This extension presents a technically significant reversal point and warrants close observation for price exhaustion.

📉 Bearish Scenario:
We could see a corrective leg targeting the 38.2% Fibonacci retracement at €22,085, which also aligns with prior structural lows. The daily fractal support at €22,306 becomes a critical interim level to watch during this potential pullback.

🔍 Key Levels:

• Resistance: €23,960 / €24,075 (alt-Bat PRZ)
  
• Intraday Support: €23,358
  
• Weekly Fractal Resistance (broken): €23,478
  
• Daily Fractal Support: €22,306
  
• Bearish Target (38.2% fib): €22,085
  

📌 Outlook:
Bias leans bearish while below €24,075. A reaction at the PRZ could provide tactical short opportunities, especially if confirmed by momentum divergence or candlestick rejection signals on lower timeframes. As always, manage risk accordingly.

Happy Trading,
André Cardoso