DAX in a continuation pattern

The German stock market has continued the correction in the recent days.

Source: Bloomberg

The trend line at 11,861/11,853 was broken down significantly. Currently the DAX is trading below the 21-days moving average (EMA) at 11,745.

We see a bullish flag as a short-term continuation pattern on daily basis. This pattern mark a small consolidation before the previous move resumes. A break above the resistance at 11,990 the DAX would continue the previous upward trend. The target price is the high at 12,221 from the beginning of March.

Currently the German stock market is testing the lower trend line of the mentioned bullish flag pattern at 11,630. The next support is at 11,600 (23,6% Fibonacci retracement). Further supports are the 38-days moving average (EMA) at 11,497 and the trend line at 11,454/11,467.

German stock market DAX on daily basis

Source: IG Charts

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