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More pain to come … (part 5) … the CHART

The fundamental picture is clear … what about the chart???
When will it be played out???

I think NOW(!!!) … Bears have NOW the chance to crack this market …

IMHO …

From the top, we had ONE move down … many times shortened and stopped by black magic of Ben, Hank and the boys … read: MANIPULATION

Now we completed a correction pattern to the upside, known as a Gartley-Pattern … a type of a “W” with an extended right leg.

EXACTLY NOW, the bears have THE CHANCE to start the necessary SECOND WAVE down …

Now … doing the math … we come up with the following targets for the DAX …

5.980 (bullish case) 5.200 (neutral case) 4.400 (bearish case)

The STOP LOSS for this scenario will be a weekly close above 7.400 or an earlier buy signal …

Sell in May and go away? :)

See chart below!!!

Daily Dax … DOWNWAVE started!!!

Copyright by Tradestation

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This entry was posted on Mittwoch, Mai 21st, 2008 at 21:26 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.

2 Responses to “More pain to come … (part 5) … the CHART”

  1. Eric Says:
    Mai 22nd, 2008 at 04:28

    Interesting…. are you recommending putting on a large short position on the DAX? And, are there any ETF’s that allow you to do that? I will be curious to see how this plays out. Especially with the upcoming summer months promising to be verrry verrry interesting! (It’s an election year…. beware of August surprises!)

  2. Oli Says:
    Mai 22nd, 2008 at 07:39

    I just give opinions and ideas … more is not possible within the framework of a simple blog … I personally trade Futures and Options … ETFs I don’t watch.

    Have a nice day!

    Whatever you do … watch your position, know your risk, have always STOPS ….

    Oli

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