Technical analysis of the DAX index - viewed in the D1 chart
The DAX was able to defend its upward trend above the 50-day line despite a more volatile pace in the past trading days. It is still within walking distance of the record high of 15,803 points. A decision as to whether the index remains true to its seasonal pattern and can mark a new high in a timely manner in order to then switch to a corrective phase of several weeks to several months after a top in the course of July should be made in the coming trading days.
Short term opportunities on the upside remain
We continue to favor a temporary new high in the orbit of the remaining potential target areas at 15,900 / 16,000 points or 16,187-16,274 points in July. There are various Fibonacci extension targets, the capping resistance line along the highs of April 19 and June 11, as well as the upper limit (measured by indicators) in the weekly chart. A price confirmation would be seen in a daily close above the current resistance at 15,803 points. After the targeted high, we expect a medium-term downtrend to be established.
Trigger zone on the bottom
From our point of view, the alternative would be an upstream slide below the critical support zone at currently 15,448-15,461 points, especially at the end of the day. A horizontal accumulation zone and the 50-day line act as support themes here. In this case, we would classify a dynamic sell-off in the direction of 15,309 points and then 14,816-14,961 points as likely. Below the last-mentioned zone, the higher-level chart image would then also become significantly clouded.
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