DAX Tests Resistance Trio Inside Bearish Flag Formation

In today’s technical analysis, we’re taking a closer look at the DAX, which is showing early signs of strength as the new week begins — but still faces major obstacles before confirming a bullish reversal.

The index is currently moving within a bearish correction, shaped as a flag pattern marked by black trendlines. This flag follows a prior move lower, keeping the overall structure technically bearish for now.

Last week, the DAX broke an important level — the 24,200 zone, highlighted in yellow. This area had been a key support, and breaking below it triggered further downside pressure. At the same time, price also slipped under the blue uptrend line, adding weight to the correction.

Now, we’re seeing a comeback attempt. Late in the European session, DAX is pressing against the upper boundary of the flag, hinting at a possible breakout. But for buyers, this is far from a done deal.

The DAX is facing a triple resistance zone:

1. The upper black line of the flag

2. The blue uptrend line (previous support, now resistance)

3. The yellow horizontal level at 24,200 — the most important of all

Only a clear breakout above the yellow horizontal resistance would trigger a long-term buy signal and shift the bias back in favor of the bulls.

Until that happens, the setup remains fragile, and as long as we stay below all three resistances, the sentiment stays negative and sellers are still in control.

Source: https://www.axiory.com/analytics/technical-analysis/dax-tests-resistance-trio-inside-bearish-flag-form