ΕΛΠΕ ΜΙΓ ΔΕΗ
October 18, 2016
Buy, sell or hold?
October 19, 2016

DAX is providing a bullish pattern (Inverted Head&Shoulder) that is not yet confirmed and bearish divergence signals at current levels. As can be seen in the daily chart below we could draw a bullish inverted Head & Shoulders pattern with a neckline at 10700. In the Daily chart price is trying to break out of the Ichimoku cloud and is now forming the right shoulder and as early as today we could see an upward breakout.

dax

However oscillators on a weekly basis justify a pull back at least towards the broken downward sloping red trend line (that was once resistance). I tend to agree with the bearish scenario more as technicals in other major indices are as well as bearish for the short-term at least.

dax2

SPX-NASDAQ

spxweekly nasdaq

EUROSTOXX50

eu50

More updates on my views and ideas on indices follow me on twitter @alexanderyf.

Have a nice day

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.