DAX is breaking above the long-term upside resistance
What is happening with DAX? We are seeing the MONTHLY November bounce off the support 11450. Does this mean that the DAX will break above the key long-term resistance 3.3000? Should you be building the buying position…If we look at the monthly chart we can see a huge reversal month happening in November but we need to see a close above 13500 which was the 2020 high for an extension higher to 14000.
The only thing that we can’t rule out is a violent price action around 13400 is not excluded and this is exactly the strong resistance for an extreme upside continuation. At the moment a break and confirmation above 13300 is a clear indicator that the upside extension is valid and dominant. We can see that clearly on the weekly chart below. Rejection in that zone or here could lead to a downside reversal and a retest of the important 13000-13100 support zone.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
