DAX downside potential is substantial and is close to break-out.DAX IndexXETR_DLY:DAXTradingShotDAX (DE40) has been trading within a Channel Up since the February 10 2020 High right before the COVID crash. The price is currently at the bottom of the 0.786 - 1.0 Channel Fibonacci range, which is the long-term Sell Zone that once broken has initiated strong declines. Not necessarily standard technical Bearish Legs like the 2022 correction, but strong declines nonetheless, with the most recent ones being the March 2026 U.S. - Iran War correction and before that the March 2025 U.S. - China Trade War, both of which found Support exactly on the 1W MA100 (green trend-line). The 1W MA200 (orange trend-line) however, has been intact for 4 years (October 31 2022) and given the prolonged Bearish Divergence created on most indicators as the index has slowly traded within the Channel's Sell Zone, it is not unlikely to see it retrace as low as its 1W MA200. If that materializes, we can expect to see a pull-back to as low as 21500. That will be within the 0.5 - 0.382 Channel Fib range, a Zone that has produced most of the markets rebounds these past 6 years. --- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. ** --- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇