DAX update 09.04.18
New pattern alert in the DAX. We can clearly see this "inverted SHS pattern" (iSHS) which has formed over the last weeks. It is a bullish reversal pattern.
The main question is now, will it be triggered? The minimum target would be 13400, if triggered.
So what is going to trigger this pattern you may ask? The answer is a significant breach of the downtrend line. My estimate is 12540 would be enough to trigger this rally.
As you can see this trendline was breached today, but only very indecisively. Nothing is decided yet. The DAX is currently retesting the trendline from above, which is bullish.
In this situation a new rally can start at any moment in time this week. The little pullback to 12000 is another bullish alternate, that I will be watching closely. Because the 12000 level is important. If we see a pullback, this level will likely decide about bounce or bust.
The target for the bearish alternate would be 11350.
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DISCLAIMER: This post / analysis serves general information purposes only. I am not, and never will be a financial adviser. The material in this post does not constitute any trading advice whatsoever. This is just the way I see the charts and what my trading ideas (from my personal experiences) are. I use chart pattern and Elliott Wave analysis for my trading ideas.
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Good news as stocks have been off a bit recently.
Although I don't necessarily trade with pattern, I'm watching this beautiful formation for a long time. I prefer the long variant you are referring to, at least in the medium term. The weekly chart still clearly shows me a sell mode, but taking a correctiontrade could not hurt, to sell off then.
This week I expect a correction up to 11.980. From then on I plan a longtrade with a first target around 12.920.
Thanks for your view
and sunny greetings from Austria
Totally agree, price bounced off the monthly demand, I expect a bounce before price goes lower to my next target at 11200.
This looks beautiful. pockets getting full arn't they!!