German DAX Gears Up for Imminent Breakout

The German DAX has been moving sideways for the past few sessions, which may not seem exciting at first glance. However, sideways trends are often the calm before the storm, as decreasing volatility usually leads to strong breakouts. Right now, DAX is coiling inside a symmetric triangle pattern marked with blue lines, and the breakout looks imminent.

Daily volatility is narrowing, and we are likely to see a decisive move soon—if not today, then very likely within this week. The base scenario is simple:

• Breakout to the upside of the triangle would generate a strong buy signal and could trigger a new wave of bullish momentum.

• Breakout to the downside would, on the other hand, confirm a sell signal and open the way for a deeper correction.

At the same time, traders should remain cautious about the possibility of false breakouts, which in many cases can create powerful trading opportunities in the opposite direction. For now, patience is key, but once the breakout comes, DAX should deliver a clear trading signal.

Source: https://www.axiory.com/analytics/technical-analysis/german-dax-gears-up-for-imminent-breakout