DAX index continues the short term decline, breaking through the 50% retracement level (5,770) and testing now the 61.8% retracement level.
As stated in the previous analysis, the main support zone is between the 5,680 and 5,849 levels.
On medium term (a few months) we are looking at higher lows and one sharp rally that ended in late October at 6,425 level. Having this in mind and adding the possible bullish reversal on RSI, I am looking for a confirmation of reversal in this area in order to give buying signals.
On the 30min chart (a closer look) I plotted the falling wedge pattern, which usually leads to a sharp move in the opposite direction. Moreover, this wedge could end up as a final wave of a 3 wave corrective move (down) started in early December. The wedge pattern implies, in many cases, a final thrust that is travelling beyond the T2 trend line, before the direction change.
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