DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually daily there is a very large volatility that gives many trading opportunities.
Yesterday’s session on the German index did not bring any solution, and the shape of the Monday candle clearly indicates the lack of market decisiveness as to the future direction. Currently consolidating in the region of level 12,560 DAX tested the most important resistance on the chart on July 10th at 12,644. The cluster of the Fibonacci corrections (50% of the current in-charge impulse started on June 15 and the abolition of 38.2 active growth impulse from March 23 to May 22) and the tops of candles from April or around the closing session of June effectively stop the bulls from continuing move to the north:
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When analyzing the intraday chart, one can use the H4 interval on which the growth channel in which the index moves since the end of June is marked. The no-breakout of the July 10 summit and the divergence between the graph and the stochastic oscillator indicate that the uptime momentum on DAX may be depleted. A bottom breakout from the channel would create a flag on the chart, whose target range goes beyond the support at 12,384 and the June minimum at 12100:
