DAX is still in a correction phase and not in a reversal phase. Indicators show clearly that we are in an overbought level.
However, there isn't yet any sign a trend reversal. Therefore, the index may go smoothly down towards 9475. At that level, depending how fast it reaches this level, we may be faced with a double bottom. If this level is broken, the next level is 9006 where the double bottom may be very much the case. 9006 is a critical elvel according to Fibo retracement.
Baring in mind the situation of the market where money is cheap is Europe and in the US because of the low interest rate, and despite the bad statistics, there isn't yet any sign that the raising channel may reverse.
In case ECB would intervene with a European QE.
Therefore, on a short term basis, one should focus on the correction phase. And when this is over, at 9475, 9350, or 9140 and 9006, then the headline goal appears to be 10400 to be confirmed of course.
However, there isn't yet any sign a trend reversal. Therefore, the index may go smoothly down towards 9475. At that level, depending how fast it reaches this level, we may be faced with a double bottom. If this level is broken, the next level is 9006 where the double bottom may be very much the case. 9006 is a critical elvel according to Fibo retracement.
Baring in mind the situation of the market where money is cheap is Europe and in the US because of the low interest rate, and despite the bad statistics, there isn't yet any sign that the raising channel may reverse.
In case ECB would intervene with a European QE.
Therefore, on a short term basis, one should focus on the correction phase. And when this is over, at 9475, 9350, or 9140 and 9006, then the headline goal appears to be 10400 to be confirmed of course.
