DAX respecting diagonal support

2022年5月15日

This is Germany's stock market index, one of the strongest economies in Europe.
The index consists of the 40 largest companies listed in Frankfurt Stock Exchange.

On the monthly chart we have the red diagonal line, which has been a support since the beginning, as shown in the circles.
We also have the middle yellow line, which has been tested 11 times as a support.
In the times when the line was 'respected', I put the green number.
When the line was broken, I put the red number.

Will it break down this time?
Cyclically, the price reaches the red line in the month of March.
So if this periodicity continues, the price would reach this line in March 2023.
Or if it happens equal to 2011, at least it would come close in September this year.

At least in the short term, the scenario does not seem to be the best, and this is true for all markets.
The monthly MACD is pointing down, which is not a good sign.

But just because something happened in the past doesn't necessarily happen in the future.
This is just a prediction and a question.

2022年9月22日

註釋

Bullish Divergence DAX: Now is the moment of truth