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German DAX technical analysis, the index reached and exceeded the second target of the third bullish daily wave at 1.618 FIB extension at 15 000. The index went as high as 15 810 and formed a double top within the ascending wedge, which is an early signal for potential pullback and correction ahead. If the index breaks below the last week’s low at 15 476, that will send the price lower to the bottom of the range at 15 304.
Focus for the weeks ahead is on the range between 15 304 – 15 810. A break below the range will send the German DAX lower toward the 0.386 FIB retracement of the weekly chart at 15 000 – 14 990. The second target of this retracement is at 0.618 FIB retracement of the daily chart at 14 950, and the third target is the 0.618 FIB retracement of the weekly chart at 14 480 – 14 500.
On the bullish side, if the German DAX breaks above the 15 810, it will resume the bullish daily wave and send the index higher. The third target of this bullish wave is the 2.272 FIB extension at 16 950 – 17 000, and the fourth target is the 2.618 FIB extension at 18 000.
Daily chart:
Weekly chart:
