DAX hits first level of support and rallies, new all-time high?

The DAX managed to pull back, as anticipated through rotations at the top of a structure area it failed to break above into its all-time high and into a new high after several attempts and the downside was expected. We had 2 levels identified as potential targets, the first being the cluster of support that was mapped out based on where the price started its rally which was between 12930 and 12965 which happened to be the inflection point at which the DAX recent bounced off.

The second target area for the downside on the retrace was 12615 which was a Fib level that we were watching, but the rejection at the first level suggests that this move lower was just enough to get some new buyers interested. Now, what is the move higher? Where is the upside target? With the Christmas rally ahead we may see new highs across the board in equities. From here we really need to break through the 13305 level that is holding resistance and get into the previous all-time high.

If price breaks above 13305 into 13320 then we will anticipate the move into the high at 13600 or so. For that, some good European trade talks will help out a lot.

Disclaimer: This idea is for educational purposes only, this does not constitute as trading or investment advice. TRADEPRO Academy is not responsible for any market activity.