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DAX 30 & FTSE 100 Price Outlook:

DAX 30 & FTSE 100 Wedge Breaks Look Imminent, Catalyst Required

The DAX 30 and FTSE 100 have worked themselves into similar technical patterns over the last few weeks as both indices find themselves near the lower-bound of a rising wedge formation.[1] Rising wedge patterns are generally viewed as bearish technical formations and, if the textbook example occurs, conclude by a breakout to the downside through the lower bound. Thus, the presence of such a formation on the European indices could suggest potential declines in the days ahead.

DAX 30 Technical Forecast

While the formation is typically viewed as an ominous one, there is cause for encouragement on the DAX 30 price chart. Most notably, the DAX 30 has recently established a series of new all-time highs which could suggest an eventual wedge break may serve as healthy consolidation before the next move higher rather than a rally-breaking reversal.

DAX 30 Price Chart: 4 - Hour Time Frame (March 2021 – June 2021)

dax 30 price chart

A bearish breakdown would see the DAX 30 test prior resistance around the 15,400 mark and a breach through secondary support may lead to range-bound price action for the German equity index.

How to Short Sell a Stock When Trading Falling Markets[2]

FTSE 100 Technical Forecast

The FTSE 100 finds itself in a similar position, albeit over a much longer timeframe which could suggest a deeper retracement should bearishness occur. Unlike the DAX 30, the FTSE has yet to establish a new all-time high in the pattern, or in the post-pandemic era, which highlights the relative weakness of the index.

Thankfully for bulls, the FTSE 100 enjoys nearby support in the form of a Fibonacci level and the 50-day simple moving average. Both technical

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