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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Tuesday, November 1, 2011

DAX Technical Analysis 2011.11.01

Looking for pullbacks to sell

The “good news” regarding the Greece bailout seems to be completely forgotten by investors around the world as the main indices lost around 3% yesterday.

The German DAX index is currently trading around the 5,900 area, creating new lows in today’s session. The rally recovered almost 62% of the may-september decline and also reached the mid march troughs.

The Elliott Wave count is pretty clear, reflecting (the most probable but not for sure) the end of wave 2 and the beginning of wave 3 towards the down side. The slope of the latest decline is steep, confirming the beginning of another wave in the main trend direction (down in our case).

The best strategy from now on is looking for pullbacks to sell, following the short direction. The eventual retracements (up moves) should be reversed in the 38.2%-61.8% zone of the previous swing (down move). 

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