As I´ve predicted the german index DAX has fallen out of the wedge to the bottom.
With this movement the chart pattern Shoulder - Head - Shoulder - has been completed.
In a first attempt it has fallen on the neckline, which has considerably been a support. But in a second attempt it has broken this support and also the fib retracement 61.8%.
This trend has been previsible, because RSI has shown this trend for a while (of course it could have turned).
The fundamental facts for the german economy aren´t very positive, so I don´t see any support from this side. On the contrary, the Euro-Zone in whole is weak, Italy causes a lot of uncertainty.
I think the DAX can fall on to the next support, which I see at ~ 11400 (fib retracement 50%). This fib level isn´t very strong but in this case there is also a swing trend level.
Conclusion: this is not a short dip, it´ll take a little longer for a recover
this is no trading advice.
With this movement the chart pattern Shoulder - Head - Shoulder - has been completed.
In a first attempt it has fallen on the neckline, which has considerably been a support. But in a second attempt it has broken this support and also the fib retracement 61.8%.
This trend has been previsible, because RSI has shown this trend for a while (of course it could have turned).
The fundamental facts for the german economy aren´t very positive, so I don´t see any support from this side. On the contrary, the Euro-Zone in whole is weak, Italy causes a lot of uncertainty.
I think the DAX can fall on to the next support, which I see at ~ 11400 (fib retracement 50%). This fib level isn´t very strong but in this case there is also a swing trend level.
Conclusion: this is not a short dip, it´ll take a little longer for a recover
this is no trading advice.