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⋅ 🇩🇪 DAX time for a correction?
🇩🇪 During last week's trading sessions, we could see an attempt to stem the declines on Germany's main index, which comprises the 40 largest German companies. The correction from the bottom was already 9%.
🇩🇪 The bottom fell on 28 September and from then on we began to slowly form breakout formations on the chart. We have been making higher and higher highs and lows.
🇩🇪 Looking from a fundamental point of view, the dax index is in the best position relative to other indices.
🇩🇪 Low interest rates at 1.25 per cent are unable to suppress demand for investment loans.
tradingeconomics.com/germany/interest-rate
🇩🇪 At the same time, during Friday's session we also saw a strong correction in US and German bonds, which could signal a change in sentiment towards equities and in the medium term could generate an upward impulse on this stock.
🇩🇪 Turning to the chart, we are at a strong support line from which the price has repeatedly been pulled upwards. During Friday's session we tried to go lower but the level was defended.
🇩🇪 If the positive sentiment is maintained, we can expect the price to continue to rise towards 13400 points where I find a strong line of resistance.
🇩🇪 In this situation, it would be appropriate to take a defensive order below Friday's lows and target the 13400 points zone where the range of the last upward correction is also located. This gives us a very good risk/reward ratio of 3.19
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