Bank earnings loom large; CPI ahead; Nvidia’s China chip - what’s moving markets
After a messy star the DAX's Inverted Head and Shoulders pattern finally sees lift-off:
I have retained the original 'neckline' although you can see price did create a lot of noise around this breakout level before the uptrend finally resumed. Take note however that whilst there were intraday spikes back beneath the neckline, the closing prices did respect the trendline and we have since seen 2-gap ups to further highlight the strength of the breakout (known as 'breakaway gaps').
As we approach today's trading session I would say it is highly likely we will test 10k today for the following reasons: DAX closed at the record high yesterday and the US Futures have just opened and also remained at yesterday's levels.
It is also a strong possibility we will see a retracement around 10k, but due to the bullish momentum of the recent move, I suspect any retracements could be limited and for buying opportunities on intraday timeframes to be favoured for the time being.
For those that trade the D1 timeframe it may be advised to stand aside and await a healthy retracement and respect of support levels before seeking bullish set-ups to reach the projected target around 10,500.
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