Yesterday saw the German Dax index hit the support level at 10,800 that we have been talking about
for the past couple of months. This was its first main target after confirming the shoulder-head-shoulder pattern in October.
The trend is bearish with no Relative Strength Index divergence indicating that we are likely to see lower levels into the end of 2018 and going into January.
We do, however, see strong support just above 10,000.
For the index to reverse this medium- to longer-term bearish trend, a close above 11,690 is needed, but I do not really see that scenario unfolding any time soon.