DAX - get ready for head and shoulders pattern
The German stock exchange index DAX has been creating a potential head and shoulders pattern on the daily chart. After the spring and summer rally, the market has been consolidating and creating a potential distribution in the area of the bearish gap from February.
The whole movement looks like a possible head and shoulders pattern where the left and right shoulder seem to be at the same level and the head is just above the shoulder.
The neckline could be located at 12313 pts and if it is broken we may expect another decline to the next possible support level set by the June low at 11545 pts.
This scenario may change only after a breakout of the resistance at 13227 pts.
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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.
The whole movement looks like a possible head and shoulders pattern where the left and right shoulder seem to be at the same level and the head is just above the shoulder.
The neckline could be located at 12313 pts and if it is broken we may expect another decline to the next possible support level set by the June low at 11545 pts.
This scenario may change only after a breakout of the resistance at 13227 pts.
________
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.
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