DAX potential head and shouldersPrice forming a H&S pattern with RSI divergence. Indices in Asian session could shift sentiment tonight.
MPO of pattern is at 11900. Potential support at 12000. China may raise risk level to 2 after disturbing news from Beijing about more cases of virus.
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GERMANY 30
DAX outlookLooking at DAX we are approaching the upper trend line, also at the next resistance level. Expecting consolidation/pullback here before the next break.
So far the economies are opening and things seems to be on the right track, making investors happy.
ECB is expected to announce further stimulus this Thursday, which is already causing a spike in EUR and indices.
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DAX double topDivergence on RSI and a confirmed uptrend line. MPO if the neckline breaks is at 11200 level.
While overnight market went to test the highs, there is a clear lack of buyers for now so potential to see a pullback.
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DAX monthly outlookAs the price level pulled back into bullish territory, May candle found resistance at the 50SMA on monthly chart and closed below the 61.8%. That is strong resistance.
So far, as economies in Europe reopen, we still look on the bullish side for now, but need the break of 50SMA for more confirmation.
ECB rate announced on Thursday will shed more light on the QE measures and show us more direction for the index.
1 hour time frame (see below) shows potential to pull back to 11200 territory.
Increased riots in USA and fear of similar situation in Europe puts pressure, so EU and UK governments are expected to bolster public morale.
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#de30y - Please, please take the money ;-) #eurobonds #ecb #fedPlease, please take the money and keep it forever. Repayment is just like interest payment - devil's stuff, that's why the investors like to pay the interest to the (above all, God like) German government, so the burden of economic decision is taken away from the investors. The honorable and cheered government can distribute the money to all big companies and their shareholders, as well as to our EU-Friends. (Irony off)
1st target: - 0.9% p.a.
2nd target: - 1.5% p.a.
3nd target: monetary reform
Greetings
Stefan Bode
DAX outlookAs the equities took a bullish turn on the positive outlook on economic re openings, DAX approached the 61.8% retracement since the sell off.
If the fundamental news do not change, we should see a break higher towards the 11800 round number. First target of the breaks is 12000.
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Psychological fear and freed patternI am still waiting for an opportunity to short, in my view, we see a glimmer of hope until august - september.
But I guess when it gets colder more people will go to the doctor and become sick, so more corona infections.
My assumption is that insider will trade some weeks before that corona wave 2 to save their assets.
This second wave would be fatal, cause stimulus injections will be limited this time and corona will end only until 2021 may.
A big Insolvency wave will drain the market.
In my view I see black
Dax idea - multi time frameDax tried to go lower and found support this week
this isn't over yet. Next week i believe we will have some positive days moving towards the wave (4) a key resistance level for dax. It is expect to see a rejection at his level bringing the price down to complete last wave (5)
attached to this idea is the Sp500 and last week De30 analysis
Last week i mention we were going to move towards an ABC correction and looks like we are on track. Take a look at that chart too
DE30 - DAX German index ABC correction - Big red week incoming Big German stocks looking for ABC correction:
SAP
VOW
SIE
LIN
BAS
BAYN is one of the big stocks that is not clear. We see a triangle pattern on daily chart. If this breaks bearish then we have a big red week for the Dax
DE30 seems to reflect this trend
next week we will be looking for ABC correction
DAX rising channelDAX in a good rising channel with multiple confirmations.
Break to the downside is a sell signal, need an impulsive break. It will also break 50 and 200 SMA's.
If DAX continues to the upside this morning, waiting to see if it can break higher than 61.8% to have more confirmation for a long.
PMI from Europe this morning is released, so could cause volatility!
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