If the DAX slips under this Friday's low and Tuesday's low, it could trigger a chain of stop losses and create an excellent, low-risk, high-reward trade setup. We will be able to sell against 11350-11400 on any rallies back up from 11,200 and would be extremely low risk, high reward trading setups.
Last month I published a chart pointing out the topping pattern that was starting and now that the DAX has moved about 5% lower, there is an even larger distribution pattern setting up.
There are 11-days here at the current price, so what we need to see to get short is for the market to drop under 11380-11375 and that will trigger a new target 800 points lower over the following 11-days.
Stay tuned!
Tim 1:53PM EST Friday, May 15, 2015 11457 last DAX (GER30)
Comments
timwest
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11375 is the price zone where the DAX begins to break the mode, which is where I have labeled "Watch out below". Monday's low (today) was close, but was right "on" the mode.
YaKa
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That would be nice.
Where do you think SP500 would go meanwhile?
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I see important supports around 11,000 on DAX if that can be reached.
timwest
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Good question @YaKa - I'm always trying to figure out the S&P500. I'll post a chart when I have something new. I've been looking for sideways to down for the S&P500 this year with 5% chop in a range. So far, pretty good.