DAX Index Testing Critical Resistance, Correction Might Take Place

DAX Index started its strong bullish rally after breaking above the resistance at 12974.07. However, the DAX bulls quickly lose their steam after securing a high at 13373.39 on 18th November. On Monday, the DAX index was down by 60.97 points. However, the bearish correction came to a halt after hitting the major support at 12974.07. Currently, the bulls are testing the major resistance at 13158.75. Breaking above this level might push the DAX Index price towards the high 18th November at 13373.39. However, it might tough for the DAX bulls to break above 13373.39 since the price has failed to make new higher highs in the 4-hour chart.

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On the downside, DAX index bears need to clear the support at 12974.07 to establish fresh selling momentum. A daily closing of the price below the 12974.07 might result in a deeper correction. If the bears manage to regain control from 1294.07, the DAX index might drop to 12819.33.

Breaking below that level might be tough since we have plenty of supportive candles. Based on the current scenario, predicting the DAX Index movement is very tough. Unless the bulls regain their full strength and make a new high, chances of deeper correction are very high. Considering all the parameters, it’s better to wait until the dust settles between the bulls and bear.Download our latest quarterly market outlook for our longer-term trade ideas.