Dax 30 is into a sell-off at the time of writing after closing a gap up. The German stock index failed to stay near the 15,603 all-time high signalings a short-term correction.
A temporary drop was somehow expected after its last swing higher. The index plunged below strong support levels, that’s why we could think that the rate could resume its decline. Technically, the decline could be only a temporary one as the bias is bullish on the medium to the long term.
Technical Analysis!
DAX 30 failed to stabilize above 15,521 and 15,469 static resistance levels and now is traded under 15,453 former low. Staying under this level may attract more sellers in the short term.
The price has closed the gap up signaling strong sellers. Its false breakout above the upper median line (UML) of the descending pitchfork signaled a sell-off. The pressure could remain high as long as it stays under this dynamic resistance.
Dax 30 has rallied in the last minutes trying to test and retest the immediate resistance levels The price could test and retest the immediate resistance levels before dropping deeper.
The bearish scenario becomes invalid only after a valid breakout above the upper median line (UML) and by a new higher high. The index could drop towards the weekly pivot point (15,308) if it stays under the upper median line (UML).
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