The German stock index DAX 30 made a massive bearish breakout after making a higher high earlier in 2020. Price is now back at the previous tops (green box) of 2007 and 2011 and the 50% Fibonacci retracement.
Monthly chart
The DAX 30 index could make a bullish bounce at the 50% Fib. The bulls are not expected to keep control. A retracement up to the 38.2% Fib of wave B vs A seems the most likely scenario. A bearish turn at the 38.2% Fib could take price down again via an ABC pattern (purple). An immediate breakout could spark an immediate decline to the 61.8% Fibonacci.
Daily chart
The DAX 30 is showing massive bearish momentum, which is why a continuation lower is always possible. If price does retrace, then a bullish ABC pattern is likely towards the round 10,000 level. The downtrend could continue again from this resistance zone.
