German DAX is once again coming to the downside after reversing from the January 19 gap, and notice that index still did not break above the 25520 high. So apparently we are still in corrective sideways price action, possibly a flat correction.
Right now, support around 24700 is being tested, which is an important level for bulls if they want to resume higher. We should also respect the red trend line support from the ending diagonal, as well as channel support around 24500–24600 on the 4 hour chart. So it is possible that we see a rally from here this week; its a valid idea as long as the market trades above 24198.
It is also worth mentioning that the current unfilled gap around 25156 is very unlikely to stay open forever, so we can expect it to be filled at some point in the future.
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Source: https://www.fxstreet.com/news/dax-faces-key-inflection-point-amid-ongoing-consolidation-202603021221
