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Mood!

Friday, November 11, 2011

DAX 4 hours...bigger picture

Well the negative news seems to not be able to drive the market significantly lower SO it seems that it will go higher...

Looking at the DAX 4 hr chart 2 scenarios

THE BEARISH CASE
possible H&S pattern with neckline at around 5730 (tested yesterday) and a price target of 5000 (September lows)

THE BULLISH CASE
We moved up from 23rd Sept low and have now retraced 50% of the move up (A to B), and could be in a bull flag formation, and pretty close to a break out to the upside (6000), with a min target of 6600 and possibly even as high as 7200..

LONG TERM
If we completed a wave 1 down at the Sept lows and we are now in a wave 2 up, wave 2's tend to bring back that bullish feeling and can even approach the highs, before we turn down in a WAVE 3 ..THE BIG ONE!!

DAX 4 hr chart
SO a Xmas rally and into New Year before the next wave down occurs..

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