#DAX will close February in a very bearish way, signaling a continued decline.
There are a few strong reasons for the alert:
- From the candles perspective, in order to avoid such monthly closure, $DAX needs to rally about 4.3% on Monday (red oval). Technically, the index registered two bearish MACD events (red arrows).
- The weekly candles formed a strong bearish combo (blue oval)suggesting a continued move down, possibly with acceleration.
- In the last week DAX registered the 50/200 and 100/200 DMA “death” crosses (purple oval). Some indicators signal that the recent low was not the last one. The trend is bearish despite the Friday’s rally.
Forecast:
While there is a good chance of a rally on Monday, it is viewed as a short-term one with a reversal towards the new lows.
Good luck!
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