This chart looks at the DAX index from Germany over the past 20-years. As mentioned above, even though this important index has traded sideways for the past 18-months, its long-term trend remains up.
While the DAX has been trading sideways for the past year and a half, it could be creating a head & shoulders topping pattern at (2).
The softness in the index has it currently testing the bottom of its trading range and 9-year rising support line (1) at (3).
Bottom line-One of the most important support tests in nearly a decade is in play at (3) for the DAX. If this support breaks it will have an important influence on other indices in Europe and potentially stocks in the states.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.