DAX Index Gives Up Earlier Gains and Falls to Critical Support

DAX index
DAX index

The DAX Index gave up its earlier gains in today’s trading as buyers lost their momentum. Germany’s stock index began the European session with a 1.30% uptick only to close with a measly 0.21% gain for the day at 10,301.540. Meanwhile, DAX Index CFDs fell from its intraday high of 10,445.3 to trade at 10,247.9.

Deutsche Boerse led gains with a 4.15% uptick while Fresenius Medical Care enjoyed a 3.42% gain. Meanwhile, Merck rounded up the top three at 2.82%. On the contrary, HeidelbergCement lost the most by 2.90%. Airline company Lufthansa was today’s second-biggest loser at 2.27%, followed by Allianz which lost 1.59%.

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DAX Index Outlook

On the 4-hour time frame, it can be seen that the DAX Index CFDs is testing the rising trend line for support (from connecting the lows on March 18, March 23, and April 2). If there are enough buyers in the coming trading days, we could soon see the DAX Index rally to its recent highs at 10,810.0.

It’s also worth pointing out that the trend line support coincides with the area around the neckline of a head and shoulders pattern. This is considered as a bearish reversal indicator. And so, a strong close below the neckline at 10,157.8 would also effectively break the trend line support too. This could trigger a bigger sell-off to April’s lows at 9,310.8.

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