German DAX: The neckline to the top at 10279 is set to cap strength – Credit Suisse

The large ‘double-top’ for the DAX remains in place, but key long-term Fibonacci supports are holding, as analysts at Credit Suisse note.

Key quotes

“We expect the ‘neckline’ to the top at 10279 to ideally cap strength and for further weakness over the next 1-3 months, with important support at 8689/8256, the 2020 low, February 2016 low and 50% retracement of the 2009/2020 uptrend.” 

“A clear and closing break above 10279/390 would negate the top to suggest a sustainable low may well be in place, which is not our base case for now.”