Good morning Traders!
On Friday, the DAX (Germany 40) has pierced it’s all times high which was printed back in November 2021.
DAX
After a lengthly consolidation underneath the strong Resistance level and the round number of 16,000 the market has finally broke above this level. The Daily and the Weekly charts are back into an uptrend, and all the higher time frames, Daily, Weekly and Monthly are currently overextended from their Moving Averages.
I am looking for a pullback to release some of this strong buying pressure, and the area I am looking at for a rollover setup is at the level of 16,000. Drawing the Fibonacci retracement of the latest Daily move, has this level nesting between the 50% and 61.8% retracement.
While the fact that the market traded above the previous all times high, can be seen as a sign of bullishness, it’s important to note that this may prove a hard resistance for the market to break, and it may need to pull back further, or consolidate below it, before advancing further.
Happy Trading!
