In our previous analysis about the German stock index DAX we have mentioned that the market may wait for a large head and shoulders pattern. The resistance where the left and right shoulders seem to be located near the same level. The neckline could be set by the previous lows at 12313.
However, looking at the lower time frame we could spot another potential head and shoulders pattern. Its neckline is being tested right now and if it is broken the market may move toward mentioned support at 12313 or even to the textbook target at 12037.
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.
However, looking at the lower time frame we could spot another potential head and shoulders pattern. Its neckline is being tested right now and if it is broken the market may move toward mentioned support at 12313 or even to the textbook target at 12037.
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.
