DAX Germany #Gold #SP500 When we last reviewed The #Dax in October (link here), the index was around 12,000 points and we predicted a drop to 11,100. It achieved target successfully and from our perspective, the stunning projection deserved a merit badge or something.
There are a couple of noteworthy items regarding the fall. Firstly, it exceeded our drop target by 70 points. Secondly, perhaps more important, it DID NOT close below 11,120 points and thus, our secondary of 10,314 is not YET a certainty. But if the index finds any reason to trade below 11,050, further drops become extremely likely. And worse, 10,314 is only our initial target!
If broken, 7,500 becomes viable.
At present, the index requires trade above 11,985 just to signal the German market has bottomed. An event such as this allows for 12,500 initially allegedly. Even if bettered, we’re not confident our secondary at 13,100 will prove valid, thanks to the extremely well defined Dark Blue downtrend from the start of this year.
In summary, we suspect 10,314 shall eventually make an appearance. The market should then exhibit reasonable bounce symptoms.
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