DAX Weekly Outlook – Consolidation Breakdown in Progress
The DAX has been moving in a broad 7-month consolidation range, showing neither a clear uptrend nor a downtrend. Such long consolidations often act as distribution zones, where smart money gradually exits positions before a larger move begins.
Consolidation Breaking on the Downside
This week, the index is attempting to break below the lower boundary of this consolidation range. A downside break after months of sideways action is usually a strong bearish signal, especially on higher timeframes like the weekly chart.
Key Level – 23,000
The 23,000 zone is the critical level to watch:
If the DAX gives a weekly close below 23,000,
And we see follow-up selling next week,
…then it would strongly suggest that the distribution phase is complete, and the index may begin a sustained downward journey.
What This Means
A confirmed breakdown from multi-month consolidation often leads to:
Increased volatility
Trend acceleration
Deeper corrections toward the next major demand zones
For now, the weekly close will be crucial. A weak closing would confirm bearish sentiment and open the path for further downside.
The DAX has been moving in a broad 7-month consolidation range, showing neither a clear uptrend nor a downtrend. Such long consolidations often act as distribution zones, where smart money gradually exits positions before a larger move begins.
Consolidation Breaking on the Downside
This week, the index is attempting to break below the lower boundary of this consolidation range. A downside break after months of sideways action is usually a strong bearish signal, especially on higher timeframes like the weekly chart.
Key Level – 23,000
The 23,000 zone is the critical level to watch:
If the DAX gives a weekly close below 23,000,
And we see follow-up selling next week,
…then it would strongly suggest that the distribution phase is complete, and the index may begin a sustained downward journey.
What This Means
A confirmed breakdown from multi-month consolidation often leads to:
Increased volatility
Trend acceleration
Deeper corrections toward the next major demand zones
For now, the weekly close will be crucial. A weak closing would confirm bearish sentiment and open the path for further downside.
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Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.