German Chancellor Angela Merkel noted that the coronavirus situation in the country was dramatic, as reported by Reuters. "It is not too late to decide to get your first COVID vaccination shot," Merkel added. German Health Minister Jens Spahn expressed his concerns over the covid resurgence, citing that “we are in a national emergency.” The aforementioned fundamentals can be clearly aligned with the technicals on the chart after GER30 (DAX) took a bearish reversal from 16304 on 19th Nov. GER30 (DAX) is still within our major hawkish channel - depicting strong bullish trend but the scenarios can turn out ot be different if it breaks out of the channel to the downside. We have our support line placed near the lower trend line of the bullish channel i.e 16115.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

GER30 (DAX) on the bullish side when we are just referring to the technicals - needs to continue its hawkish stance from the current market price i.e 16130. We can already witness the prices trading near 16191, indicating that we might see one other way up or a formation of double-top like structure indicating GER30 (DAX) will be going for a fall. 16304 top if broken this would open doors towards further gains in shape of one last wave up. 

On the bearish side, GER30 (DAX) had its relative strength index in the daily time frame trading in overbought conditions while MACD showing signs or bullish strength , supported by the Stochastic Oscillators which is already preparing for a bullish run again. By this we mean to indicate that the chances of bearish break are low. However, we will be focusing on price action and a strong impulsive move down which breaks 16000 benchmark, opening gates for a higher degree of bearish correction before moving higher. 

DAX in the Last Hawkish Wave

Nov 22 2021