DAX it is Preparing for a New Rally

EagleFX Team EagleFX

DAX 30, in its 4-hour chart, shows a consolidation structure, which looks like a pennant pattern. According to the traditional technical analysis, a pennant is a chartist figure implying a continuation of the previous movement. In this case, the primary trend corresponds to a bullish move that started in early January.

A long position will be activated if the price breaks and closes above 13,459.7 pts. This breakout could drive the German index until 13,546.1 pts, as a conservative scenario.

If the buying activity continues enlarging this potential upward leg, DAX could visit as a possible second target at 13,636.0 pts. The last potential bullish target is located at 13,727.1 pts.

The invalidation level of our bullish scenario locates at 13,369.3 pts.

Trading Plan Summary

Entry Level: 13,459.7 pts.
Protective Stop: 13,369.3 pts.
1st Profit Target:13,546.1 pts.
2nd Profit Target: 13,636.0 pts.
3rd Profit Target: 13,727.1 pts.

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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