Looking at the daily chart of the German index DAX we may spot a potential head and shoulders pattern. The prices have bounced back from possible resistance area which has been set by the previous bearish gap. If it holds the price could drop to the neckline drawn through the bottoms.
However, if this potential support is also broken we could expect another potential drop to the recent bullish gap and textbook target of the head and shoulders pattern. The potential target might be located at 9502 points.
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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.
66% 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, if this potential support is also broken we could expect another potential drop to the recent bullish gap and textbook target of the head and shoulders pattern. The potential target might be located at 9502 points.
________
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.
66% 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.
