DAX

1 Mar 2024
DAX: 4-hourly and daily chart technical view.

Daily Chart: Longer-Term Bias: Bullish

Resistance 17,004
Support 16,285 then 15,900

4-Hour Chart: Short-Term Outlook: Bullish

Resistance 17,004
Support 16,285 then 15,900

Friday 1st March

The DAX climbed 0.92% on Thursday to 17,739.48. On the price has extended recent gains to a new all-time high is a positive development supporting our bullish outlook. While the price remains firmly overbought, we see no signs of trend exhaustion or a swing high forming to suggest gains cannot be sustained. The prior bearish momentum divergence has now been invalidated, adding to an optimistic outlook.

On the 4-hour timeframe, upward momentum has resumed and an uptrend is in place. We remain mindful that the price remains highly stretched and vulnerable to a larger correction. There is initial support at the 21-period moving average, followed by 17,400. At this stage, we see no signs that any potential declines are more than corrective at this stage.

Daily Chart: Longer-Term Bias: Bullish

4-Hour Chart: Short-Term Outlook: Bullish

Thursday 29th February

The DAX was little changed overnight at 17,578 and therefore our analysis is unchanged.  On the price has extended recent gains to a new all-time high is a positive development supporting our bullish outlook. While the price remains firmly overbought, we see no signs of trend exhaustion or a swing high forming to suggest gains cannot be sustained. The prior bearish momentum divergence has now been invalidated, adding to an optimistic outlook.

On the 4-hour timeframe, upwards momentum has begun to stall, and with the slow stochastic once again crossing lower at overbought levels, the mounting probability of a correction in the coming hours. There is initial support at the 21-period moving average, followed by 17,400. At this stage, we see no signs that any potential declines are more than corrective at this stage.

Wednesday 28th February

The DAX rose 0.92% on Tuesday to 17,579.64. On the daily timeframe, our analysis continues to remains unchanged as the extension of gains to a new all-time high is a positive development supporting our bullish outlook. While the price remains firmly overbought, we see no signs of trend exhaustion or a swing high forming to suggest gains cannot be sustained. The prior bearish momentum divergence has now been invalidated, adding to an optimistic outlook.

On the 4-hour timeframe, after a sideways consolidation and test of the 21-period moving average, the price has moved sharply higher. This has confirmed an uptrend remains in place, and we maintain our outright bullish outlook.

Tuesday 27th February

The DAX was little changed on Monday at 17,419. On the daily timeframe, our analysis continues to remain unchanged. The extension of gains to a new all-time high is a positive development supporting our bullish outlook. While the price remains firmly overbought, we see no signs of trend exhaustion or a swing high forming to suggest gains cannot be sustained. An extension of gains would see the prior bearish momentum divergence invalidated, adding to the bullish outlook.

On the 4-hour timeframe, the price has moves sideways in a modest consolidation range. Typically, these patterns resolve to the upside, although we would be cautious given consolidations that are brief in time and length are at higher risk of not being sustained. For now, we maintain our bullish outlook, and preferably we see a more extended correction.

Monday 26th February

The DAX was modestly higher at 17,415.21. On the daily timeframe, our analysis remains unchanged. The extension of gains to a new all-time high is a positive development supporting our bullish outlook. While the price remains firmly overbought, we see no signs of trend exhaustion or a swing high forming to suggest gains cannot be sustained. An extension of gains would see the prior bearish momentum divergence invalidated, adding to the bullish outlook.

On the 4-hour timeframe, we have seen a brief pullback to form a higher low. The price continues to remain firmly overbought, signalling the potential for a larger correction. However, there are no signs of trend exhaustion on this timeframe to suggest any potential weakness would prove more than corrective at this stage.

Friday 23rd February

The DAX climbed 1.46% on Thursday to 17,420.39. On the daily timeframe, the extension of gains to a new all-time high is a positive development supporting our bullish outlook. While the price remains firmly overbought, we see no signs of trend exhaustion or a swing high forming to suggest gains cannot be sustained. An extension of gains would see the prior bearish momentum divergence invalidated, adding to the bullish outlook.

On the 4-hour timeframe, the price has moved sharply higher leaving it firmly overbought and the increasing probability of a correction soon forming. However, there are no signs of trend exhaustion on this timeframe to suggest any potential weakness would prove more than corrective at this stage.

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