ING Sees DAX Index at ‘Critical Juncture’: Technical Analysis

(Bloomberg) -- Germany’s benchmark DAX Index may fall as much as 5.4 percent if it slides past yesterday’s intraday low of 5,312.64, continuing the weakness that started in October, according to a technical analyst at ING Groep NV. “It is at a critical juncture now,” said Amsterdam-based Roelof-Jan Van Den Akker. A drop below yesterday’s intraday low would increase “the chance of a double top formation. Then we should expect a decline into the 200-day moving average line and support line at around 5,135.” A “double top” trading pattern occurs when share prices indicate two distinct peaks on a chart. The pattern is completed when prices decline below the lowest point of the first peak, signaling the end of an uptrend.

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