Analysis of the German DAX

The DAX rose strongly today for the third day in a row as most major companies advanced.

SAP shares led the rise by more than 1%, while Siemens, Deutsche Telekom, Airbus and wallianz saw modest increases of about 0.2%, and Siemens Energy shares fell by 4%.

Automobiles were among the worst performing sectors, hit by disappointing industry data that came in below expectations of no change.

German industrial orders unexpectedly fell by 5.4% in November, primarily due to a sharp drop in large-scale orders for transport equipment such as aircraft and military vehicles.

At the technical level:

The DAX rose, forming the bat harmonic pattern on the four-hour frame near the 20480 levels, and the indicator-centered supply levels for the daily frame.

We expect the index to start declining during the coming period and we are targeting the levels of 20300 and then 20100.

This scenario fails if the 20600 levels break higher.