Dax … Monthly Chart

Having a close look on the monthly chart, one can see, that it is about decision time for the DAX …

Copyright by Tradestation

It moved since 2003 in an uptrend which it even broke to the upside in April, this year all the way back to the former All-Time-High, but was not able to close above it (on a monthly chart). We had the first attempt to fall back into the 2003 uptrend denied in August, but again failed to top the ATH. Now the November candle (obviously we have to wait until the end of Nov.) is about to close back down in the uptrend and by doing this will signal a possible trendchange … even more as on a monthly basis the uptrend since June 2006 is as well at risk at the moment. A monthly close below it could open up the downside as the November candle as well could form a bearish engulfing pattern, could be part of an eveningstar and could complete a bearish M pattern!!!

This could lead to real liquidations especially after such a long uptrend with a lot of possible profits to take.

Conclusion: If we don’t rally immediately and close above the talked about levels … better you FASTEN YOUR SEATBELTS.

Targetzone on a monthly chart … 7000 … 6600

Tags: Chart, longterm, outlook, pattern

This entry was posted on Freitag, November 23rd, 2007 at 16:04 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.