Look back over the past, with its changing empires that rose and fell, and you can foresee the future too.

— Marcus Aurelius


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Wednesday, June 6, 2012

DAX, rally finally arrived..

Well the DAX was just 100 points away from the 61.8% Fibonacci retracement level at 5815, and has rallied..

BUT is it THE rally?
Pluses, the rally in EURUSD, rally in Gold and Silver, miners and commodities.

Negatives, sharp move up is characteristic of bear rallies (sellers step away, and shorts cover at any price),

6230 seems a key level to get over..before a corrective rally can be thrown out of the window.

Weekly chart
still in down trend.
a break above descending trend lines will be sign that down trend finished

DAILY chart

Shows market was oversold.
Resistance at 200 dma
Resistance at descending trendlines

so expect another 100+ points up for a reasonable short entry

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