The DAX has rebounded and is undergoing a classic ‘neckline’ retest to the very large recently completed ‘double top’ at 10279, economists at Credit Suisse inform.
“We expect the 10279 level to cap and for further weakness over the next couple of months, with important support at 8689/8256, the 2020 low, February 2016 low and 50% retracement of the 2009/2020 uptrend.”
“The ‘measured top objective’ roughly coincides with the 61.8% retracement at 7742 and 7485, where we would start looking for signs of a floor.”
“As above, important resistance is at 10279/390. A clear and closing break above here would negate the top to suggest a sustainable low may well be in place, which is not our base case for now.”
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