DAX: Key Resistance Breached, But Confirmation Needed

Let’s revisit the DAX, where things are moving fast. Yesterday, the index was testing the key horizontal resistance around 23,900 points, and we saw a shooting star pattern form (marked in yellow), typically a bearish signal.

But that signal failed. Today, DAX is pushing above the resistance, and at the moment, the price is breaking out higher. What’s notable is that this move is not mirrored by U.S. indices, which are lagging behind. That divergence makes DAX’s action even more intriguing.

• If the price closes today above the blue resistance, that will confirm the breakout and provide a strong buy signal.

• If we see a reversal and a close back below the resistance, the breakout will be invalidated, and that would signal a sell.

It’s a pivotal day for DAX – the market is at a decision point.

Source: https://www.axiory.com/analytics/technical-analysis/dax-key-resistance-breached-but-confirmation-neede