Tuesday, November 29, 2011

DAX daily update

Well the fall out of the chop was a little deeper than expected..BUT we are still in a channel and now approaching a key level 5785.. a break above that and the rally is back on...otherwise we may just trade in the channel.

Things to note..

1. Despite all the negative news markets have not "fallen out of bed" ie they have only given up between 50 - 70 % of the rally from October lows
2.  The media are extremely negative on everything.
3. Despite all the negativity surrounding the EURO €, also has held up relatively well
4.  Likelihood is that the money is all betting on demise of Euro and Europe...

Looking at the EURO chart
Looks like we could be in falling wedge patterns
If we break out to upside (expected move) then in theory the entire falling wedge will be retraced..
(similar patterns also in AUDUSD and GBPUSD)

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