German DAX: Index At Critical Technical Resistance

European equities underperformed US equities in 2014. And much of that had to do with economic woes and deflation concerns. Will this continue into 2015, or will European equities change course and begin to perform better. Look no further than the German DAX for clues. This broad German equities index is fairly representative of mainland Europe due to Germany’s economic leadership role in the EU.

As you can see in the chart below, the German DAX has formed a topping pattern similar to 2007-2008. How this pattern breaks could have implications for global portfolios. A break above would be very bullish, while follow through lower would be bearish.

German DAX Long-Term Chart – At Critical Resistance

german dax topping_technical resistance chart 2015

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Note that investors can also monitor and track German equities through the Germany iShares (EWG).  Thanks for reading and best of luck in 2015!


Follow Chris on Twitter:  @KimbleCharting

No position in any of the mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.