DAX Index At Fresh Highs, Correction Might Take Place

After clearing the high of  October 28 at 12980.81, the DAX index secured a new high at 13169.38. Pushing above the fresh high at 12169.38 might requires strong fundamental catalyst since plenty of exhaustion candle is spotted in the DAX index 1-hour chart. If the DAX price manages to break above the resistance at 13169.38, we might see a strong gain in the index in the upcoming week. Failing to do so, DAX price might fall back towards the immediate support at 12974.34. But the fall in the DAX index might not be contained by the 12974.34 level, high of 28th October. The index might prepare for deeper correction before it takes another attempt to break the record high.

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If the bears regain control from this level, the bears might succeed to push them down. Breaking below the support level at 12974.34 might push the DAX price lower towards the support at 12792.29, low of 31st October.12792.29 level might refuel the DAX bulls and push the price north to clear the record high. However, failing to regain the bullish momentum at 12792.29 might result in an extensive downfall in the DAX index. Considering all the technical parameters, investors are advised to stay cautious since imminent correction might take place in the DAX index.

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Gold price chart, four-hour

DAX index

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