Friday 29 August 2014

DAX forming classic H&S

The American indices have recovered from the small correction in the first few days of August, whereas the European ones haven't, each reaching recovery to a fib point. The German DAX, the one most strongly affected by Russia/Ukraine issues only made it back to the 61.8% level (9600), and is now falling again.

In the shorter term, a classic head and shoulders pattern is forming on the DAX which normally predicts a return to the neckline and beyond

A drop to 9430 seems inevitable, if not 9240.

It will however be interesting to see how this compares with the US indices, which are at all time highs.

1 comment:

  1. As the $DAX has now broken 9600, this H&S is invalidated


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