DAX rejection or breakout

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.


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.



spxweekly nasdaq



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

Have a nice day

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