The German DAX has stalled at resistance.

The German DAX has seen a significant rally since mid September as we broke many resistance levels in the market. However we have spent the last several sessions stalled at the precious highs from 2018 (previous right shoulder of a long term head and shoulder’s pattern) and the long term 88.6% Fibonacci retracement as well. The bigger issue for bulls at the moment is the daily RSI is pointing lower as we work off overbought conditions which in turn could pull price lower for a near term pullback.

DAX at Resistance

Blake Morrow