Current trend

This week, the quotes of the DAX 40 index are actively decreasing within the long-term ascending channel.

The price has already broken below 15625.0 (Murrey level [4/8]), which will allow it to reach the area of 15312.5 (Murrey level [2/8], Fibonacci retracement 23.6%), and then completely leave the ascending channel and drop to the levels 15000.0 (Murrey level [0/8]) and 14687.5 (Murrey level [–2/8], Fibonacci retracement 38.2%). Otherwise, the growth from the lower border of the channel will resume towards the middle line of Bollinger bands around 16000.0 and 16250.0 (Murrey level [8/8]).

Technical indicators point to the continuation of the negative trend: Bollinger bands are reversing downwards, the MACD histogram is increasing in the negative zone, and Stochastic is pointing downwards.

Support and resistance

Resistance levels: 15625.0, 16000.0, 16250.0.

Support levels: 15312.5, 15000.0, 14687.5.

Trading tips

Short positions may be opened from the current level with the targets at 15312.5, 15000.0, 14687.5, and stop loss 15660.0. Implementation period: 5–7 days.

Long positions may be opened when the price reverses around 15312.5 with the targets at 16000.0, 16250.0 and stop loss 15150.0.