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, November 7, 2011

DAX Technical Analysis 2011.11.07

Bearish signal on DAX if it breaks below T1 trendline

DAX index failed to reach last week the highs of 27th of Octomber  and, most likely, formed the corrective wave [ii] as a part of the 5 wave impulse move towards the mid-september lows.

The channeling of wave 2 (composed of [a], [b], [c] sub-waves) shows the importance of T1 trend line. This will basically give further evidence of wave 3 developing.

Although maybe it’s too soon, I will take my chances in saying that the end of wave 3 will take place well below the mid-September lows in the 4,970 area.

A possible future scenario is plotted on the 4h chart and the most important aspect to follow is a consolidation in the 5,000-5,500 area as a wave [iv] is likely to form there.

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