#Brent #US500 Life’s a funny old thing. When we last reviewed Germany back in October (link) we gave criteria defining 13,650 as a major point of interest for the index, something the market achieved and bettered during February. The odd thing, when we give these secondary targets, we tend anticipate a bit of hesitation at the price level, generally some volatility or stutters.
The DAX, of course, paid lip service to the concept of hesitation, choosing instead to fall by 1,200 points over three sessions. Some say it was something to do with pandemic fears and nothing at all to do with our 13,650 level…
In reality, our price levels generally justify a little volatility and (unless some positive or negative news makes itself known) the volatility will be fairly minor. We saw this today with the FTSE as our initial target level was 6999 points. As the chart below highlights, the index hit our initial target, bounced around above and below for a while, then on the 3rd break upward, continued to our secondary target. This tends be the important thing with price levels. Mostly they pass virtually un-noticed unless someone throws a cat among the pigeons.
Unfortunately, the DAX found itself primed for a ruddy great cat incident!
The situation with Germany is now a little strange. If we concentrate on reversal potentials, it appears weakness next below 12,368 should attack a bottom of 12,152 and hopefully generate a bounce. We actually have some doubts, thanks to the effort employed on Wednesday to force a bounce. It almost felt like “they” didn’t want the market to fall further.
Instead, the immediate situation suggests recovery above 12,850 should bring a visit to 13,034 next. If bettered, we’d regard it entering a cycle back up to 13,650 as secondary again, utterly confusing us, why is this level so important?
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:27:45PM |
BRENT |
52.85 |
52.38 |
52.135 |
49.63 |
54.7 |
54.82 |
55.86 |
57.02 |
53.94 |
Success |
|
10:29:38PM |
GOLD |
1641.62 | |||||||||
|
10:34:29PM |
FTSE |
6907.24 |
Shambles | ||||||||
|
10:40:31PM |
FRANCE |
5600.2 |
Shambles | ||||||||
|
10:43:52PM |
GERMANY |
12542 |
Success | ||||||||
|
10:45:45PM |
US500 |
3102.07 |
3090 |
3071 |
3034 |
3135 |
3154 |
3169 |
3193 |
3121 |
Shambles |
|
10:48:59PM |
DOW |
26872.7 |
Success | ||||||||
|
10:51:25PM |
NASDAQ |
8826.79 |
‘cess | ||||||||
|
10:53:43PM |
JAPAN |
22191 |
‘cess |
