Weak Start for DAX as Key Supports Collapse

The German index is experiencing a negative start to the new week. The price has just escaped from a symmetric triangle pattern marked with black lines, and importantly, this breakout occurred to the downside. The drop took place overnight, breaking a key structural support level and raising concerns for buyers.

In addition to leaving the triangle, the DAX also slid below the orange horizontal support – the lows from the 21st and 22nd of August. Now, ahead of the European session, the index is testing this broken support as resistance. So far, the test favors sellers, with the price struggling to regain higher ground.

As long as DAX remains below the orange resistance and the lower black line of the triangle, sentiment stays negative, pointing to further downside pressure. A comeback above those levels would flip the outlook and could be treated as a buy signal, but at this point, chances for that remain very limited.

Source: https://www.axiory.com/analytics/technical-analysis/weak-start-for-dax-as-key-supports-collapse