DAX aims the 14800 support
30 January 2023
Monday starts with a bigger bearish correction on indices but do we have to start worrying about it or it is still nothing serious? Well, in my opinion, the second option should be considered as a base scenario for the next few days and in this piece, I will tell you why.
Let’s start from the beginning. Since October, DAX is in an uptrend, which most recently entered a flat correction stage. The correction is a pennant formation (red) and in general, promotes the breakout to the upside. What will happen if the price will break its lower line? Not much really as DAX is still above a key, long-term horizontal support on the 14800 points (yellow). This support is absolutely crucial in terms of the sentiment here and as long as we stay above this area, the long-term sentiment remains bullish.
In addition to that, we do have a mid-term up trendline (blue), which remains intact and also has the potential to stop any decline. My view on DAX remains bullish, as long as the price stays above the yellow area and blue support. Chances for a breakout are currently really low.