DAX Weekly Outlook – Consolidation Breakdown in Progress
The DAX has been moving in a broad 7-month consolidation range, showing neither a clear uptrend nor a downtrend. Such long consolidations often act as distribution zones, where smart money gradually exits positions before a larger move begins.
Consolidation Breaking on the Downside
This week, the index is attempting to break below the lower boundary of this consolidation range. A downside break after months of sideways action is usually a strong bearish signal, especially on higher timeframes like the weekly chart.
Key Level – 23,000
The 23,000 zone is the critical level to watch:
If the DAX gives a weekly close below 23,000,
And we see follow-up selling next week,
…then it would strongly suggest that the distribution phase is complete, and the index may begin a sustained downward journey.
What This Means
A confirmed breakdown from multi-month consolidation often leads to:
Increased volatility
Trend acceleration
Deeper corrections toward the next major demand zones
For now, the weekly close will be crucial. A weak closing would confirm bearish sentiment and open the path for further downside.
The DAX has been moving in a broad 7-month consolidation range, showing neither a clear uptrend nor a downtrend. Such long consolidations often act as distribution zones, where smart money gradually exits positions before a larger move begins.
Consolidation Breaking on the Downside
This week, the index is attempting to break below the lower boundary of this consolidation range. A downside break after months of sideways action is usually a strong bearish signal, especially on higher timeframes like the weekly chart.
Key Level – 23,000
The 23,000 zone is the critical level to watch:
If the DAX gives a weekly close below 23,000,
And we see follow-up selling next week,
…then it would strongly suggest that the distribution phase is complete, and the index may begin a sustained downward journey.
What This Means
A confirmed breakdown from multi-month consolidation often leads to:
Increased volatility
Trend acceleration
Deeper corrections toward the next major demand zones
For now, the weekly close will be crucial. A weak closing would confirm bearish sentiment and open the path for further downside.
Exención de responsabilidad
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Exención de responsabilidad
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.