DAX Index Trading Higher, Deeper Correction Might Take Place
After breaking the high of 2nd January 2020, the rally in DAX Index has been capped by the critical resistance level at 13515.80. Currently, DAX Index is consolidating and the breakout might get triggered by the fundamental catalyst. In the case of the bullish scenario, we need to break above 13515.00 marks to establish fresh buying momentum. A daily closing of the price above that level might push the DAX Index towards the next critical resistance level at 14000.00. This level might act as a psychological resistance level and any bearish price action signals might refuel the bears.
On the downside, the imminent target for the DAX index bears lies at the critical support level at 13423.46. Breaking below that level might push the DAX Index towards the next demand zone at 13334.14. This level might strongly support DAX bulls. Any bullish price action signals at that support level might result in another bullish rally. However, if the DAX bulls fail to regain control from that level, we might see a sharp fall in the DAX Index price. Considering the technical parameters, the DAX bulls seem to be exhausted. So, if the price heads south, it should be considered as the corrective move.Download our latest quarterly market outlookfor our longer-term trade ideas.
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