DAX is extending above the Inverse H&S formation neckline
From the beginning of the Year, after touching the low, DAX continued higher and is trying to finish the week above the important 11500 level. This upside breakout continuation is opening a possible, long-term swing down 50% Fibonacci retrace test, 12000 level.
A strong upside reversal, with the high possibility of the extension higher, is visible on the daily chart as well. A strong support zone for the upside continuation now is 11530-11600. This zone should hold for the extension higher above the 200 SMA 11757 level. Expect stronger upside resistance.
Strong near-term upside 11550 support level is visible on an intraday chart. Any pullback from the strong long-term upside resistance should be supported from the 11500-11550 zone. Break above the 11635 level should target 11930. Look for the long trade entries with the stop loss below 11550.
We have used the combination of the top-down trading analysis to get these key levels explained on the charts.
Happy trading! (click on the chart to enlarge it)
Bushido
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