DAX consolidation continues, bias remains to the upside

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The German DAX Index has failed to reach the upside target of 11600. this comes following the bullish flag technical pattern of a few weeks ago. However, price action is well supported above the key price level of 10000.

That said, the sideways ranging has somewhat weakened the bullish pattern.

Despite this, the overall bias in the DAX remains to the upside. This is true as long as the support level near 10000 holds up. For the moment, price action closed in a somewhat bullish pattern after the intraweek declines last Thursday.

The hidden divergence on the Stochastics oscillator also adds to this view.

For the moment, the upside target can be achieved only if the DAX index can break past the initial price level of 11100. If price stalls at or below this level, expect the sideways range to continue with the potential for price to touchdown back to the 10000 level of support.

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