German DAX due for a retracement

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The German DAX index maintained a steady rally as last week, price hit the 11600 target.

This marks the completion of the bullish flag pattern that was identified a few weeks ago. Prices briefly rose past this level before consolidating.

The current outlook shows a possible retracement on the cards.

Following the rally that sent the DAX Index to highs above 11600, watch for a lower high forming. Thus, a close below 11600 after this lower high could indicate a correction in the short term.

The downside target is near the 11200 level, where support is pending a retest. The downside bias is invalid if the DAX closes above the previous highs of 11800.

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