Is the economy already benefitting from an AI boom?
The Power of the Pattern has been saying for months that how the German DAX and bio-tech behave have a large impact on the broad markets in the states. The chart above looks at the DAX index over the past few years. The DAX remains inside of a 5-year rising channel. At the same time it is dealing with 5-month falling resistance at the red arrow above.
This week the DAX looks to be putting in a rather “large bearish reversal pattern” up against falling resistance.
Three weeks ago I noted that high-flying and falling Valeant Pharmaceuticals (N:VRX) was hitting five support lines, with oversold momentum. Since then, VRX gained 30%.
What it's doing this week looks to be very important in the chart below.
VRX rallied 30% off support in just three weeks. The strong rally hit steep falling resistance this week and the stock looks to be creating a bearish reversal pattern at resistance.
Both the DAX and VRX look to be creating reversal patterns this week at falling resistance. If these two continue to act weak, it should influence the broad markets in the states.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.