DAX Channel Down aiming at 16000

DAX (DE40) has transitioned into a Channel Down pattern following the December 14 top rejection on the Higher Highs trend-line. The 1D MA50 (blue trend-line) is fast approaching as the first level of Support but we expect it downtrend to bottom lower as resembles the declines of August 2023, March 2023 and December 2022 both on price and 1D RSI terms.

All those declines have been extended at least to -6.50% so if the current pattern continues to replicate them, we expect a 1D MA200 (orange trend-line) test. As a result our Target is 16000, exactly at the top of the Support Zone. We will buy for the medium-term once the 1D RSI starts making Higher Lows (buy on the 2nd Higher Low) at below neutral levels. The 1W MA100 (yellow trend-line) is the long-term Support.

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