Thursday, April 25, 2013

DAX - Another Decision To Make

Just like that, DAX is up 350 points in three sessions, a lot more than what I expected. Now the price is testing the right shoulder of head and shoulders I talked about before. If it closes above 7880 for two sessions, then there is a risk of the pattern to be negated, and a run to the high could be next.
One important issue stands to be decided next week. The whole reason for this brisk rally is a hope for ECB to cut rates next week. What if that rate cut does not happen? What if it is all in the price, and traders sell on news? Then I think there is a chance for continuation of the short-term downtrend, and a much lower target to complete the projected move down to 7050, with scaleouts @ 7270 and 7170 on the way there.

click on chart to enlarge 

1 comment:

  1. Hi MV!

    Can you please create a post with your short, medium and long term view related to SPX 500? I'm interested to see what's your opinion.

    Thank you,