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: Pullback Looks Constructive, Watch Support Not Far Below

DAX: Pullback Looks Constructive, Watch Support Not Far Below

Paul Robinson,

What’s inside:

  • DAX gaps to near record high last week, pulls back
  • Price action past few sessions suggests higher prices
  • Support lines below hold, so does a bullish bias

Join us for webinars conducted daily covering a host of topics including analysis, education, and coverage of fundamental events. See the Webinar Calendar for details.

Last Monday, the DAX gapped higher to just below record highs created in 2015 at 12391; the market fell shy by about 16 points. That gap led to an immediate intra-day reversal and subsequent weakness for the remainder of the week.

Thursday and Friday both brought gap-down days with reversals back into or very near positive territory, which is short-term bullish and may mark the bottom of the recent decline. In the event of more selling and a move back towards last week’s low of 12119, the DAX will also challenge the trend-line off the December low. A break below that line and 12119 wouldn’t yet turn the picture bearish, as another line of support aligns not far below by way of the lower parallel running higher from the early-February swing-low. It would require a break below all three levels of support before we would consider the possibility of a deeper decline developing.

On the top-side, in the very short-term 12290-ish could act as resistance, but the real focus is on last Monday’s high of 12376 and the record high at 12391. A push beyond the previous highs would be bullish, but only to a modest extent. The trend-line running higher from August passing through near last weeks’ gap high may be problematic, in addition to the upper parallel married to the early-Feb trend-line.

For now, we hold a bullish bias on a hold of support close at hand, but will reserve excitement even if the market crosses into new record territory.

DAX: Daily

Created with TradingView

See where our team of analysts forecast markets to head during Q2 in our Trading Guides

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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