In today's technical analysis, let’s take a look at the DAX, which is showing strong bullish momentum.
The German index is climbing significantly higher, and technically, it appears the bearish correction phase is over. We’ve seen two key technical developments that support a shift in sentiment:
-
The price has broken out of a black symmetrical triangle to the upside, which marks the end of consolidation and the beginning of a bullish phase.
-
The breakout above the red downtrend line serves as a strong confirmation of a trend reversal. With the price now trading firmly above both the triangle and the trendline, the buy signal is active.
Now, there's just one final hurdle for buyers—the purple horizontal resistance around 22,100 points. This level has acted as a key barrier in the past. A daily close above this resistance would be the ultimate confirmation of a long-term buy signal, potentially opening the way for a sustained upward move.
In summary: DAX is breaking out of its bearish structure. With the triangle and trendline already left behind, all eyes are now on the purple resistance. If bulls manage to conquer that level, it could mark the start of a significant bullish leg in the DAX.