Last week situation on DAX didn’t change. First three daily candles from last week formed bearish evening star pattern, however bears didn’t use the chance to attack and after Thursday’s breaking 10,800 level, on Friday there was an attack of new top. Level 11,000 is still not conquered but consolidation lasting for whole week gives bulls big chance to break this resistance. The biggest threat for gains on DAX is currently situation on Wall Street. After Friday’s data form labor market which were much better than anyone expected EURUSD decreased an support from last 6 months was broken. It is probably that this year lows which is 1.0500 area will be tested again.
USA data will influence on December FED decision about hiking interest rated. FED has many place to maneuver because American economic data is getting better and better. First hike must happen eventually and it can influence American stocks. Current bullish trend n DAX is connected strongly with situation in the US.
Anyway, scenario I write about for few weeks now, is still actual. Current gains can be big correction wave B in bearish ABC pattern. In this case in the nearest time we should see bearish move and deepening of this year’s low. The second possibility is that DAX ended correction and currently is in new bullish wave. This new impulse can improve historical top. it is not possible now to say which scenario is true.
Key levels in the nearest time:
- 11,150-11,300 pts (next resistance – bullish gap from August 12th)
- 11,000 pts (important resistance)
- 10,600-10,500 pts (support – bearish gap from October 23rd)
- 9,900 pts (support)
- 9,700 pts (currently it is fibo 78.6% and there should end wave 2)
