The German DAX 30 has is soon reaching a decision point in its correction. It closed up half up Thursday at half a percent before drying up friday with a small +0.03% gain. After it’s the completion of the inverse head & shoulders pattern, I believe we can now see a completed Bear Flag Pattern coupled with a double top. Analyst believes the positive news of trades out of China gave the DAX investors and traders to see a positive outlook in the next week.
We are watching 12,500 to 12,450 region as a possible area for sellers to push into the market. This is has failed twice this month, serving up a Double Top Pattern which is an indication of a move to the downside. If this momentum moves up and fails to break this region we could see a confirmed Triple Top Pattern before the market fails and buyers relinquish their position.
THE PLAY: We are neutral this week to wait for more action to play out. However, an impulsive break below 12,250 and close on the daily time frame will spark us to short this market.
We are watching 12,500 to 12,450 region as a possible area for sellers to push into the market. This is has failed twice this month, serving up a Double Top Pattern which is an indication of a move to the downside. If this momentum moves up and fails to break this region we could see a confirmed Triple Top Pattern before the market fails and buyers relinquish their position.
THE PLAY: We are neutral this week to wait for more action to play out. However, an impulsive break below 12,250 and close on the daily time frame will spark us to short this market.