Germany 40Short
4-hr German40: 400 Points Drop, If a Key Support Fails
The German DAX 40 has formed a Double Top, a classic bearish signal, triggering a 300-point drop. The RSI points downward, indicating strong selling pressure, but remains above oversold territory, suggesting further downside potential. The broader international stock market sell-off supports this bearish outlook. The Golden Cross pattern has been invalidated by the prevailing downward momentum. Immediate support is found at the 23% Fibonacci retracement near 20,090, which aligns with the 60-period MA, forming a critical level. If this support fails, a deeper decline towards 19,600 is highly probable. This zone coincides with the 50% Fibonacci retracement, a key level that acted as a reversal point in December. For sellers, 19,600 serves as a strong target for take-profit, given its technical significance and historical relevance.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.