The DAX Continued its Recovery
The DAX continued its recovery rally from the previous week’s low of 12,600 points only in early trading yesterday. Starting from the 3-day high marked in the first hour of trading at 13,029 points, after the formation of a bearish shooting star candle in the hourly chart, profit-taking began, which pushed the price down to a low recorded in late trading at 12,820 points.
With the end of the day at 12,855 points, the index failed in its attempt to sustainably overcome the critical hurdle reaching up to 12,975 points. Classifying the latest recovery rally as a mere pullback to Thursday’s downward gap and the broken short-term uptrend line remains possible. Confirmatory signals for a renewed takeover of power by the bears would be seen in one hour below the current support at 12,820-12,838 points and in one go below 12,775 points. Potential next targets are then 12,715 / 12,720 points and 12,600 / 12,618 points. Below that, the corrective downtrend from the high at 13,152 points would be confirmed with possible targets at 12,540 points, 12,469 points, 12,342 points and 12,157-12,254 points. The next resistances are currently lurking at 12,926 points and 12,975 / 13,029 points. Immediately bullish would only be again above 13,152 points. In this case, a prompt advance towards 13,339 points and 13,460 / 13,501 points would be possible.