It apears that DAX is likely to crash as it has formed a beautiful head and shoulder pattern. It is possible but I think DAX is less likely to break to the downside because:
(a) DAX is completing the complex fourth Elliott wave which has retraced back exactly 38% of the third bullish wave started in June 2016. It is now likely to move up in the fifth wave.
(b) DAX has not broken the bottom of the red channel (yet) which has remained intact since 2009. DAX can moves up after gaining support from the bottom of the channel.
(c) Everyone thinks that it is about to crash and it cannot be that obvious!!
Although anything can happen, but I think that DAX is more likely to move up from here, and reach the 15000 level before dropping back to around 10000. However, please pay attention to how the bottom of the red channel behaves. This idea will only work if the bottom of the red channel acts as support. If it breaks and starts to offer resistance, then the head and shoulder pattern will do what it is supposed to do!
PS: This analysis is just for educational purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Cheers
ND
(a) DAX is completing the complex fourth Elliott wave which has retraced back exactly 38% of the third bullish wave started in June 2016. It is now likely to move up in the fifth wave.
(b) DAX has not broken the bottom of the red channel (yet) which has remained intact since 2009. DAX can moves up after gaining support from the bottom of the channel.
(c) Everyone thinks that it is about to crash and it cannot be that obvious!!
Although anything can happen, but I think that DAX is more likely to move up from here, and reach the 15000 level before dropping back to around 10000. However, please pay attention to how the bottom of the red channel behaves. This idea will only work if the bottom of the red channel acts as support. If it breaks and starts to offer resistance, then the head and shoulder pattern will do what it is supposed to do!
PS: This analysis is just for educational purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Cheers
ND
評論:
Weekly view:
評論:
The bottom of the channel has provided the support so far...
評論:
There may be another retest of the bottom of the channel next week. Let's wait and watch...
