The DAX index has broken out of the August downtrend and could make a move higher towards 15,800.

The DAX broke out of trendline resistance on the 22nd of August and then pulled back to test that now support level. The move higher today seems to be drifting towards 15,800, with a break above 15,760 to confirm further upside towards 15,895 and then 16,000 in extension of this. This trade must be taken with caution though as MACD has turned negative recently and volume is low. The 4-hourly timeframe also looks somewhat promising too. Towards the downside support for the index sits at 15.600 with trendline support at 15.450 in extension of this.