DAX is testing the long-term upside resistance
The Monthly DAX chart shows that the instrument is testing the Modified Schiff Andrew’s Pitchfork long-term uptrend channel resistance line 16000 and is being rejected. As long as the instrument is below 16000 we are expecting the downside reversal. Invalidation and a bigger pullback to 14890 will come only upon a confirmed break above 16000.
On a Daily chart, we can see an uptrend Pitchfork channel formed and the instrument is also hitting a resistance of 16000 which makes this a double resistance by channels and it seems that we will face a bigger correction below this level. You can place a short trade with a stop loss above 16000 to target the 14500-14800 zone.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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