The DAX index looks set to end the week lower after buyers failed to overcome the weakness of the previous trading sessions. The DAX index is currently down by 0.24% on the day. It was trading a lot lower earlier in the session after disappointing PMI results for the Eurozone. However, bargain hunters were able to get into the fray and were able to push prices off intraday lows.
German Flash Manufacturing PMI came in at 57.0, which was lower than the 57.3 market expectation figure and lower than last month’s 58.3. This leaves the DAX index off the record highs established earlier in the week.
Technical Levels to Watch For
The daily chart for the DAX index shows that price activity has condensed into a symmetrical triangle pattern. Today’s bounce off the lower triangle border ensured that price action stays well above the 13792.286 support level. If buyers are able to force prices higher in the next training session, then the Dax index may well be on its way to attempting a break of the triangle’s upper border, just short of the 14000 price level. The expectation is for the price to break to the upside to continue the initial trend that preceded the triangle. if this turns out to be the case, we could see the DAX index targeting the 14131.52 price level, which is the highest recorded level for the DAX. Above this area, the DAX index pushes into record territory.
On the flip side, rejection and pullback at the upper boundary of the triangle send the DAX index towards the triangle’s lower border, where it will mount a challenge against the 13792.286 support level. A breakdown of this level targets 13700 initially, with 13629.61 lying below as an additional Downside target.
DAX Index Daily Chart