Published: 2024-06-17T14:06:02.000Z
Chartbook: DAX Chart: Room for a corrective pullback in dominant multi-month bull trend
Senior Technical Strategist
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The anticipated, (steepening), break higher has reached 18893
The anticipated, (steepening), break higher has reached 18893, where a tick lower in weekly stochastics and the bearish weekly Tension Indicator are prompting a pullback.
Immediate focus is on congestion around 18000, with a break opening up the 17627 monthly low of 19 April.
A further close beneath here will add weight to sentiment and prompt a deeper correction within the rising channel from the 14630 low of October 2023 rally from 14630, towards congestion support at 17000.
However, any deeper losses, if seen, should give way to consolidation above critical support at 16500 and the 16528 year high of July 2023.
Meanwhile, resistance is at the 18893 all-time high of May 2024 and the 18900 Fibonacci projection.
Following corrective/cautious trade into 2024Q3, the rising monthly Tension Indicator and rising multi-month studies are expected to prompt further gains.
A later close above here will turn sentiment outright positive and open up strong psychological resistance at 20000 and the 20100 projection.
This area should cap any initial tests, before positive multi-month charts prompt further gains.