Last week on DAX chart is represented by bullish candle which happened after 5 bearish weeks. New week is very important to future sentiment of German index. On the weekly chart we can see rebound of bullish trend line and triple bottom pattern which couldn’t be broken by bears. On the other side bullish candle has smaller volume than rest, what doesn’t indicate strength of bulls.
There is also ambiguous situation on daily time frame. Friday’s candle is doji, with Thursday’s it creates doji star pattern. If today’s session starts significantly lower than Friday’s close, we will have even stronger patter – evening doji star. For now gains are blocked by October’s bearisg gap (marked blue on screen). ADX indicator looks nice, it indicates direction of the trend. Although it didn’t gave buy signal but it is getting close to it and it would mean end of sell signal generated and kept by ADX since August 10th.
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On MDAX situation is even more optimistic. Weekly bullish candle broke tops from last six weeks. Bears can look for average volume and the fact that gains reached 61.8% fibo which is standard level for correction in trend.
