Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Monday, October 17, 2011

DAX Technical Analysis 2011.10.17

DAX Index is loosing momentum

DAX Index gained around 950 points (18.6%) from the 4th of October until now, the most power being in the first third of the move.

The rally is clearly losing momentum as the multiple trend lines (connecting previous troughs) are showing a decreasing slope. In other words, sellers are becoming more visible and buyers are losing optimism.

If the 6,000 – 6,100 will turn out to be the top of the rally, we are expecting at least a down correction, targeting the 5,500 – 5,700 area. Most probable, the down move will be formed of 3 sub waves (as shown on the chart), creating a break-retest-continuation pattern.


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