DAX Opens New Week With Bearish Pressure

In today’s technical analysis, let’s look at the German DAX, which begins the new week under pressure. The weakness stems from the close of the previous week, where the index failed to sustain a breakout attempt above the blue resistance zone. Adding to the bearish tone, the price bounced off the pink horizontal resistance and formed a shooting star candlestick pattern, signaling rejection of higher levels.

The new week opened with a sharp drop, producing a large bearish candle that pushes the DAX towards a key dynamic support, marked with the black trendline connecting the August lows. This line is crucial for the bulls. A daily close below it would open the way for a deeper bearish correction and serve as a proper sell signal.

For now, sentiment remains cautious. Buyers need to defend this black trendline to avoid handing control fully over to the bears. If the defense fails, the technical picture could quickly shift towards a more prolonged downswing.

Source: https://www.axiory.com/analytics/technical-analysis/dax-opens-new-week-with-bearish-pressure