We have D/Tpd at 12565, but unlike the FTSE we didn't plunge to giddy lows....Dax has actually held up quite well considering...we are virtually unchanged from last nights close...Technical indicators on 4 hrly are pointing lower, that is a little disconcerting, so we really have to make a concerted effort to take out this DT because failure would leave the market in a more precarious position. Now the daily charts are poised to turn lower after reaching extreme 95% overbought...so we really do need the market to take stock and decide whether it is going to take the DT out...Frankly that isn't looking likely and rallies should still be sold whilst the market is in such an overbought state on the daily charts...Now I do not think it is going to crash, because the weeklies still look quite perky.. They have a bullish chart pattern and bullish indicators...also on the recent dip 2 weeks ago it only retraced 23.6 of the move up from 2016....that in itself was a bullish sign...So...short term retracement , then up seems the way forward for DAX.
We didn't quite manage to break 3536 yesterday, the high was 3533.. If we do manage to climb back and break 3536 look for 3555/60 as a viable targeted area...dangerously overbought on the daily charts however....The weekly chart pattern is virtually the same as DAX but we did exceed the 23.6 on the way down...we went to 3361...which was in the Feb/April cluster of support and resistances...If you look at the weekly chart you can see the bullish flag evident...with the break point happening this week at 3495...So there is a bit of underlying strength under the market...Now obviously a close back below 3490 would take the wind out of the sails a bit and this should then provoke a move lower...we would see 3470 then 3428 as a viable target. I am going to move the break point today to 3540....If we break and close above here we would be in quite a good position to test 3586 next week...
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