Decoding German DAX: Crucial Levels and Emerging Patterns

GER30

Current Market Overview
Explore the latest insights into the German DAX index with a focus on pivotal support, resistance levels, and potential trading patterns.

Support and Resistance Levels

• Support at €21,105: This level acts as a critical neckline for a potential Head and Shoulders pattern formation. We should watch closely for any breaks below this level, as it could signal further downside movement.
  

• Resistance at €21,557: A new resistance level has formed close to the 61.8% Fibonacci retracement level. This resistance may contribute to forming the right shoulder of a reversal pattern.
  

Potential Head and Shoulders Pattern


The Head and Shoulders pattern is a key technical formation to watch for:


Formation Details: If the DAX breaks below the neckline/support at €21,105, it could confirm the formation of a Head and Shoulders pattern.

• Target Projection: A break below the neckline suggests a potential downside target around €20,452. This level aligns with the weekly fractal resistance previously breached at €20,529, which could act as support.
  

Happy Trading,
André Cardoso