DAX Poised To Break Out
Alexandros Yfantis | Oct 18, 2016 06:57AM ET
DAX is providing a bullish pattern (Inverted Head and Shoulders) that is not yet confirmed and bearish divergence signals at current levels. As can be seen in the daily chart below we could draw a bullish inverted Head and Shoulders pattern with a neckline at 10700. In the daily chart price is trying to break out of the Ichimoku cloud and is now forming the right shoulder and as early as today we could see an upward breakout.
However oscillators on a weekly basis justify a pull back at least towards the broken downward sloping red trend line (that was once resistance). I tend to agree with the bearish scenario more as technicals in other major indices are as well as bearish for the short-term at least.
SPX-NASDAQ
Euro Stoxx 50
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