From the above chart of DAX we can clearly see that, it was trading in a triangular pattern and sometime during mid may it broke out of it and started trending higher. Target for the traingle pattern come close to 10200 on the upside, but i feel short term, medium term and long term top is in place. On 13 June which was the last trading day a DRAGONFLY DOJI was formed on the short term trendline which indicates buyers kicked in some buy orders before closing. MACD is in a sell mode RSI has broken 60 which was earlier acting as a good support. I am keeping my negative stance on DAX on break below 9900 with a sl of 10350.Targets for downfall would be 9675(50 dma), 9500,9270(200 dma). My analysis also gives me a target of 5000 on DAX. So don't be shocked if it even halves its value.
For me trend in DAX has reversed in very short term. Shooting star candle pattern formed and evening star formed today. TREND REVERSAL WILL BE VERY SWIFT!!
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