The German DAX index has opened with a huge bearish gap. Thus, the market seems to fall below the key support level at 13452 which has been a previous resistance. Currently, the market is testing another potential support at 13022. However, if it is broken we may expect another sell-off with a potential target at a previous gap near 50 percent Fibo retracement.
If this gap is filled the correction may be finished and a new upward movement may be created in the near future. From the larger perspective, the DAX index may also create a potential inverted head and shoulders pattern.
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Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
If this gap is filled the correction may be finished and a new upward movement may be created in the near future. From the larger perspective, the DAX index may also create a potential inverted head and shoulders pattern.
________
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.