Looking at the DAX index, we are seeing rejection of the 161.8% extension, forming a double top pattern with divergence on RSI. MPO target is 7000, but there is a very strong resistance area around 9000 level.
Elliott waves are showing the end of the trend and start of the correction. As we completed wave 5 in the end of 2017 and started corrective wave a in a a 12345 formation, then b in and abc formation. Now c wave starts and should progress in a 12345 formation down.Considering that the virus news are not getting any better, we are still looking for a sell off next week.
China will be opening the market after a bank holiday week. Pre-market is already looking at Hang Seng with a 1.16% loss at the time of writing. Expecting the rest of the markets to follow in a sell off, so far February looks like a very bearish month.
Another point of concern is Brexit as UK left the EU on Friday 31st at 11pm. There is uncertainty regarding the following negotiations with the EU and UK to make new trade agreements. This could put some strain on the markets as well.
Good Luck!
Elliott waves are showing the end of the trend and start of the correction. As we completed wave 5 in the end of 2017 and started corrective wave a in a a 12345 formation, then b in and abc formation. Now c wave starts and should progress in a 12345 formation down.Considering that the virus news are not getting any better, we are still looking for a sell off next week.
China will be opening the market after a bank holiday week. Pre-market is already looking at Hang Seng with a 1.16% loss at the time of writing. Expecting the rest of the markets to follow in a sell off, so far February looks like a very bearish month.
Another point of concern is Brexit as UK left the EU on Friday 31st at 11pm. There is uncertainty regarding the following negotiations with the EU and UK to make new trade agreements. This could put some strain on the markets as well.
Good Luck!