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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Wednesday, November 9, 2011

Head and Shoulders on DAX

Another way to look at DAX: last few weeks formed a Head and Shoulders pattern that points out lower prices in the future days.

A brake of the neck line will set the market to travel towards the lows of September, the target being in the 5,143 area. This is also a support due to the local lows in the month of September and early October.

I am looking for a brake below 5,800 level, followed by a pullback (a retest of it) in order to generate a sell signal. However, this is only a scenario of possible price evolution. The main point remains, though, the 5,143 target in case the H&S will be validated.    

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