DAX: Frankfurt begins a new leg of decline

The DAX could return to 14,000 points in the short term

This new bearish outlook would be reinforced in the event of a decline below the 20-day moving average. The last time the DAX broke below the Parabolic SAR indicator and its 20 session moving average after rebounding more than 15% (April and August), this marked the start of a new leg down to new lows. annual lows.

The first support to watch will be the symbolic threshold at 14,000 points, which blocked the DAX in August, then the Fibonacci retracement threshold of the recent bullish rally at 13,218 points. In the longer term, a return to October lows below 12,000 points and new yearly lows are likely to be expected given the growing risk of a global recession.

Entry: Sale below 14,500 points

Stop: 14,700 points

Objective: 14,000, then 13,200 points

Risk/return ratio: >2

Follow the evolution of the DAX 40 price with IG.

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