Germany’s DAX index in sharp decline
Global markets gripped in fear after three US banks file for bankruptcy
Market indicators anticipate a global crisis
US stock indices continue to depreciate, impacting European indices
Germany’s DAX index retreats to support level of 14,900 points
Formation of a head and shoulders pattern indicate a violent decline or steep rise will follow
Current data indicate DAX may see dramatic price swings soon
Today’s market data shows that the German DAX index has formed a head and shoulders pattern. The index is now at the neckline of this pattern and has moved near the support level of 14,900 points. If DAX continues to decline and breaks this support level, its value may continue to fall to 14,700 or even 14,400 points.
Alternatively, if DAX maintains 14,900 points as a support level, its value could rise again to test resistance at 15,270 points. This would represent the pattern’s top right shoulder, and if it’s surpassed the rise may extend to 15,500 points.
However, if the index succeeds in maintaining 14900 as a support level, it is likely to rise and test the resistance 15,270 points, which represents the top of the right shoulder of the pattern. By surpassing the resistance level, the rise may extend to 15,500 points. Indices traders will keep a close eye on market data as more news is released this week.