DAX consolidates before a large move

27/04/2021

The German DAX index has been consolidating recently, and volatility has dried up. It was trading somewhat lower on Tuesday, seen at around 15,280 EUR at the time of writing. 

It looks like the index will close below the steep medium-term uptrend, which could be a bearish signal. Additionally, both the RSI and MACD indicators have sent a sent signal recently. 

Considering the overbought conditions, we might see a little correction over the next few days. 

However, the bullish momentum is powerful, and every dip is aggressively bought, suggesting bulls have not gone anywhere. The overall trend and sentiment remain bullish. 

The support now seems to be at around 15,140 EUR, where previous lows are converged with the 21-day exponential moving average. If the index drops below that support, we could see a correction toward 14,800 EUR.

Alternatively, if bulls reappear, they need to push the DAX above 15,300 EUR in order to start some bullish momentum. The next target could be at 15,500 EUR, where the current all-time highs stand. 
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