Technical Update - DAX closing below key support confirming down trend
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
DAX ended the week below key support confirming down trend on all time periods
DAX Closed Friday below key support level at 12,390 thereby confirmed down trend on all time periods; daily, weekly and monthly.
RSI is also below 40 further confirming the bearish picture. Weekly RSI has broken its rising trend line. There Is divergence however, but do remember divergence i.e. imbalance in the market can go on for quite some time, and DAX Index has no real support before at around 11,580. That level is close to the 0.618 retracement of the Q2-2020 to Q4-2021 bull trend. And the 1.618 projection of the Q3-2022 correction.
For DAX to reverse this bearish picture it needs to close above 13,565. We could see bottom fishers trying to lift market back above 12,390 but sellers are likely to be in control most of the time.
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