Key Technical Bullets:
• Has been trading in an Inverted Head & Shoulder throughout 2014
• Found support in mid-March into the 38.2% retracement of advance
• Broke above daily Ichimoku Cloud top at 9405 & gapped higher
• Closed the gap higher earlier today
• This was coincided by finding support into the 100-day sma
• Inverted H&S neckline resides near 9700
• Distance between the Head and the neckline is 800pts
• Watch for potential daily RSI confirmation/rejection at corresponding resistance
• If validated, Inverted Head & Shoulder measured move objective is 10500
Should the DAX close above 9700, next levels to watch: 9794 (2014 High), 10000 (psychological & barrier/option related) & 10500 (Inverted H&S measured move projection).
Notable data/events which may influence the DAX next week:
- Tuesday – ECB M3 money supply, EU Apr. Consumer Confidence (f), German Apr. CPI (p)
- Wednesday – German Mar. Retail Sales, EU April CPI (a)
- Thursday – German Bank Holiday
- Friday – EU Apr. Manufacturing PMI, EU Mar. Unemployment rate
Chart Source: Bloomberg, FOREX.com
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