This week, the Dax 30 resumed bullish price action and rallied to a near three-month high. Will bulls keep pushing the price higher in the coming days?
DAX 30 Technical Overview
- Paused Bullish momentum
- Dax 30 price chart highlights a continuation pattern
DAX 30: Reluctant Bulls
On November 16, the Dax hit a one-week high at 13271 however, the price retreated after, reflecting the bull’s hesitation. Ultimately, a weekly candlestick closed in the red with a 0.5% loss.
Alongside that, the Relative Strength Index (RSI) remained flat above 60 signaling a stalled bullish momentum.
DAX 30- Daily Price Chart ( May 29 - November 26, 2020 )
Chart Source: Webtrader, Capex.com
On November 10, the Dax closed above the 50-day moving average highlighting a shift in favor of the bull’s interest, the index climbed to the current 12879 – 13459 trading zone. On Tuesday, the price broke above the September 14 high at 13319 eyeing a test of the high end of the aforementioned trading zone.
A daily close above the high end of the zone at 13459 could encourage bulls to rally the price towards the monthly resistance level at 13821 ( February 20 high).
On the other hand, a failure in closing above the high end of the zone could reverse the price’s direction to the low end of the zone at 12879.
DAX 30- Four Hour Price Chart ( November 26- November 26, 2020 )Chart Source: Webtrader, Capex.com
On November 24, the Dax traded above the upper line of the ascending triangle located at 13274 indicating that bulls were still in charge.
To conclude, while bullish momentum is still in place a break below the lower line of the triangle would correct the price lower and a break below 12800 could send the price even lower towards 12472. On the other hand, a break above 13485 may extend the rally towards 13705. As such, the support and resistance levels underlined on the chart should be considered.
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