DAX Presses Into Mayor Resistance ZoneGermany 40CAPITALCOM:GER40CapitalcomThe DAX has gone from defending equal lows earlier this month to knocking on the door of major resistance. After a sharp recovery move, the market is now approaching an area where buyers will need to prove there is still fuel left in the tank. Equal Lows Trigger the Recovery Move The daily chart has quietly shifted from repair mode back into trend mode over recent weeks. Earlier this month the market formed a pair of equal lows before buyers stepped in aggressively, creating the sort of reaction that often tells you demand is building beneath the surface. Since then, the DAX has done what strong markets tend to do: recover ground quickly and give very little back. That latest push has now taken price directly into the resistance zone created by the January and February highs. Markets have a habit of remembering these areas. Traders who sold there previously, alongside those still holding positions from earlier in the year, often begin making decisions again as price returns. GER40 Daily Candle Chart Past performance is not a reliable indicator of future results Momentum itself still looks healthy. RSI has continued pushing higher without becoming stretched, suggesting buyers are still controlling the move rather than chasing the final stages of it. The 50 day moving average is also beginning to turn higher, reflecting the improving medium term picture after several months where the market spent more time moving sideways than actually getting anywhere. The Four Hour Chart Holds the Clues Dropping down to the four hour timeframe shows a very clean structure. Since the lows earlier this month, price has continued producing higher highs and higher lows, while the rising trendline has acted as a useful guide for momentum. The next move now becomes more about behaviour than direction. Strong trends do not always smash through resistance on the first attempt. Often they pause, drift sideways for a few sessions, shake out some impatient traders and only then decide whether there is enough fuel left in the tank. GER40 Four-Hour Candle Chart Past performance is not a reliable indicator of future results For swing traders, this becomes a fairly simple area to watch. Continued acceptance above resistance would suggest buyers are still prepared to pay increasingly higher prices. If the market begins to struggle and momentum starts fading, it may signal that the DAX needs a breather after a sharp move higher. After the recovery seen over recent weeks, the market has arrived at a point where it needs to prove itself again. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.48% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.