Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
DAX: Confluence of Resistance Should Prove Formidable in the Short-term

DAX: Confluence of Resistance Should Prove Formidable in the Short-term

Paul Robinson,

What’s inside:

  • The DAX holding strong
  • But facing down a confluence of resistance
  • Might not be the beginning of a major decline, but pullback from here is expected

In Wednesday’s commentary, we discussed the intersection of multiple angles of resistance the DAX is currently facing, and so far it has yet to matter. To recap: This area consists of a back-side retest of the 2011 trend-line, horizontal resistance from peaks created in May and June, as well as the all-important downtrend line off the 2015 record highs (possible top of macro bull-flag). We also noted that in the vicinity the neckline of what could be an inverse H&S pattern as a part of the giant bull-flag. The pattern considerations are some picture stuff. Let’s dial in and look at what is immediately in front of us.

The intersection of the previously mentioned lines of resistance should prove to be formidable in the near-term. We stress should because thus far no bearish signaling we have seen has played out as one might expect. However, the strength of resistance is coming in numbers, and the 2015 down-trend line really helps reinforce the area between ~10300/10400 as being a big one.

What to watch for: A turn in daily momentum and undercut of the prior day low; that would be a good start for a decline.

What to expect on a turnaround: A move back towards the 10000 level we were previously focused on as resistance would be reasonable to expect.

What will change our mind? A break above the prior before mentioned zone and the April peak at 10486. At that juncture the macro-tech patterns discussed yesterday will start to unfold. But at this time, given the huge climb since the EU referendum and multiple inflection points, a pullback prior to a further advance looks like the more likely scenario.

DAX Daily: Jan '16 to Present

Looking to hone your skills in technical analysis? Check out one of our many free trading guides designed for traders of all experience levels.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX.

You can email him at with any questions or comments.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.