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.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.