DAX Broke the 4H MA50. Bearish extension.

The German stock index (DAX) broke below its 4H MA50 (blue trend-line) on Friday after failed to break and being rejected on the 4H MA100 (green trend-line) earlier this week. This keeps the price inside both the short-term Bearish Megaphone pattern and the longer term Falling Wedge pattern.

That break is a major sell break-out signal and targets directly the 11875 Support. Below that we can only take an extension if DAX makes a closing below the bottom (Lower Lows trend-line) of the Falling Wedge. Otherwise as the price approaches the 11875 Support, it becomes a buy opportunity towards the 4H MA200 (orange trend-line).

Tradingview link:

https://www.tradingview.com/chart/FDAX1!/UM1z92JC-DAX-Broke-the-4H-MA50-Bearish-extension