Technical Update - DAX close to test June low support, will it break it?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
DAX spiked above the 0.618 retracement very close to the 0.764 before collapsing , resuming down trend. DAX is likely to test the March and June lows around 12,400 in a few days.
If DAX closes below 12,390 there is no support before around 11,580. See weekly chart.
If RSI closes below its rising trendline on weekly the outlook will be very bearish and DAX could reach the 11,580 level going in to October
A close above the upper falling trendline and above 13,565 is needed to reverse this bearish picture.
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