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.
No comments:
Post a Comment