Technical analysis for the German DAX 40, the index reached the 0.618 FIB retracement at 14 600 and the resistance zone on the weekly chart, after nine consecutive bullish weeks. The zone between the 0.618 FIB retracement at 14 600 and the March high at 14 925, will be closely watched by market participants for potential rejection and resumption of the bearish wave on the weekly chart. If the DAX index closes above the 0.618 FIB retracement on the weekly chart at 14 600 and above the March high at 14 925 that will open the door for a bullish run toward the 0.786 FIB extension on the weekly chart at 15 350.
On the other hand, a rejection of the 0.618 FIB retracement and the high from March 2022 at 14 925 will signal a potential resumption of the bearish wave on the monthly chart for the DAX index. The first target for such a bearish development is the 0.382 FIB retracement on the daily chart at 13 550, where we have support and the daily and weekly 50 EMAs.
A bearish break below 13 550, will lead to a bearish run for the German DAX 40 index toward the 0.618 FIB retracement on the daily chart at 12 900. And a break below 12 900 will open the door for a retest of the previous low at 11 862 and perhaps even lower toward the 0.618 FIB retracement on the monthly chart at 11 330.