The German DAX fell to its lowest trading level since early 2016 last week as global indices turned heavily negative on a year-to-date basis.
Germany 30 analysis highlights that the technical picture surrounding the index has changed, and bears could target towards the 6,200 level.
Germany 30 medium-term price trend
The technical picture surrounding the German DAX appears increasingly bleak, after the index tumbled towards the psychological 10,000 level last week.
Germany 30 technical analysis shows that the index could decline towards the 6,200 level after a large bullish pattern was invalidated last week.
The daily time frame shows that a large inverted head-and-shoulders pattern was invalidated after bears broke below the 10,300 level.
Looking at the size of the pattern, the index is vulnerable to losses towards the 6,200 level while the price trades below the head of the pattern, at 10,300.
Key resistance for the German DAX above the 10,300 level is found at the 11,000 and 12,400 levels.
Germany 30 short-term price trend
Germany 30 technical analysis shows that the index has a strong bearish bias while price trades below the 12,700 level.
The thirty-minute time frame is showing that the recent drop in the German DAX has created substantial amounts of bullish MACD divergence.
According to the mentioned time frame the bullish MACD price divergence extends towards the 12,000 level.
Watch out for a possible rebound in the German DAX if bulls gain traction above the 10,300 level as they attempt to reverse the bullish divergence.
Germany 30 technical summary
Germany 30 analysis shows that the index is vulnerable to further steep losses while trading at the 10,300 level. The 6,200 level is seen as a valid bearish target.