The Dax 40 index has now crept towards this key resistance level along the trendline drawn on the chart. With the German index trading at around 18,622 as of right now, the resistance along the trendline reads 18,670. Technically speaking, a break above the trendline would be a bullish indication. However, it wouldn’t be guaranteed that a pullback would not occur from that point on. A move above the resistance located higher up the chart around 18,782 would be needed to create a greater level of confidence amongst traders. This move could once again tilt the advantage towards the bulls for a steady build of momentum to break above ATHs. On the other hand, a failed attempt to break above the initial resistance may lead to yet another pullback in the near term. In that scenario, the first level on the radar would be the level of 18,280. Only a clear break below here would suggest that further downside is likely, with the attention back to 18,000-18,100. Looking at the technical indicators on the daily interval, the MACD is strongly positive and so is the RSI as it reads 63. Although, it is important to note that both the MACD and RSI are lagging indicators and only offer a guide for momentum. They do not predict future price action.