Are DAX Futures forming a rising wedge?

7 июл. 2023 г.

After yesterday’s strong fall, we can see that our DAX Futures have found support near the lower side of a possible rising wedge pattern, which can be drawn from around the end of December 2022. Although the pattern is considered to be bearish, a strong violation of the lower side of it would be needed, before getting comfortable with lower areas. In the meantime, as long as the boundaries remain intact, the index could continue trading inside the pattern, meaning it could still move back to the upside in the near term.

A drop below the lower side of the aforementioned rising wedge could be a good signal for more sellers to join in and drag the price towards the 200-day EMA. That would roughly be around the 15200-15300 territory on our DAX Futures.

In order to shift our attention to the upside, a break above a short-term tentative upside support line, drawn from the high of June 16th, would be needed. If that happens, we might then travel back up to the current highest point of July, at 16332. If the buying continues, the next target could be the highest point of June, at 16571.

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