DAX INDEX, Gap With Fill-Potential, These Are Important Levels!

Hello Traders Investors And Community, welcome to this analysis where we are looking at the DAX 4-hour timeframe, the recent events, the current price-structure-formation, and what we can expect the next times from the index. The DAX currently forms a really similar formation to the S%P 500 which I pointed already out in previous analysis with a gap-fill ahead and currently going ahead so far, if you did not watch this analysis already I highly recommend that you go on my account and watch it to have a full-depth-overview. The whole global markets seem to recover currently from the corona-breakdowns seen this year and the big question now is if the recovery is sustainable or new bearish action can enter the environment when considering a possible second wave. In the DAX I discovered some interesting signals which can have a big impact on the further price-development of this whole dynamic.

As you can see when looking at my chart is that the DAX recently broke above the huge triangle-formation it was forming marked with the green lines, currently it is holding strong above this level and confirmed the 13.000 which it has not seen since the corona-breakdowns this year. Furthermore, the index is holding above the 55-EMA marked in green which is an important EMA in this structure indicating a bullish or bearish environment also in single stock values as I pointed out in the previous analysis. Currently, the index established also this uptrend channel marked in grey which it established way in the origins of the triangle formation. You can watch also the major gap-fill-target-zone at 13550 where a gap stays with good fill-potential when the index confirms further in the current uptrend channel which shows already up with the recent bounce at the higher boundary of the triangle-formation.

Overall this is a high possible setup to succeed further when the DAX manages to climb higher the gap has a solid fill-potential. Now this does not mean the index is completely bullish similarly to other indices as we are still trading below the established high and not in a confirmed bull-market where the bear-market has ended one hundred percent but it does mean that the index showing up some healthy signs on the short-term which can fill ahead into the middle and long-term when they increase the next times. Therefore it is important to look at what the index does in the target zone and if there are bearish signs which can invalidate a continuation to the upside. This is really important and it will be highly interesting to see how the index develops in this range and if there can be a further continuation or a correction when not bigger pull-back awaiting as this can still develop.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.