DAX Double Top (D)

There looks to be the potential for a bearish double top with the trend setting up here. Let’s check it out using the daily chart.


The horizontal denotes resistance stemming from a previous swing high level set on the 21st April 2015 at 12079. Price looks headed up to test this resistance and turning down around there would create a bearish double top with the trend.
The PSAR indicator has a bullish bias after price busted the dots on the upside several days ago.
I have added Fibonacci retracement levels of the move down from all time high. The first rally in a new bear trend often makes a deep retracement and that looks like playing out here with price seemingly headed for the 76.4% level at 12102.
The Stochastic indicator looks to be threatening a bearish crossover but, until that happens, higher prices are likely.
The MACD indicator shows the averages have diverged so perhaps we can expect a top shortly before price turns back down and we see this indicator make a bearish crossover in the process.
Summing up, the new bear market still appears to be tracing out its first steps and once this expected lower high is in place the downtrend should begin to build up some steam.


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