DAX Metamorphosis

by Ashraf Laidi
Jul 30, 2019 18:17

The Daily DAX30 chart below may appear confusing at first, but it's worth taking some time to find the “clarity”. Is this case of a metamorphosis from one textbook formation to another? We think so.

Click To Enlarge
Click To Enlarge
DAX Metamorphosis - Hot Chart Dax Daily Jul 30 2019 (Chart 1)

Getting to the point: The formation starts with an inverse head-&-shoulders (bullish) formation, highlighted by the blue letters (L1, H1, N1, R1) and its corresponding objective near 12,655 (O1). The 12,655 objective then initiates a head-&-shoulders (bearish) formation, highlighted by the yellow letters, which is currently breaking its neckline. For the tradable implications of this formation and other trades, please tune in to today's video, prepared for our Premium subscribers "Onto & Beyond the Fed Decision"

Does it appear too good to be true? If valid, the current formation suggests an objective near 11850s. Would this be achieved this week once markets are dissatisfied with a mere 25-bp rate cut from the Fed? European markets are already somewhat disappointed by the lack of new information from Draghi last week. With regards to that 12650 high reached at the start of July, we predicted it 3 months earlier in this post.


More Hot-Charts

  • GBP Index & Upside Econ Surprises

    Feb 21, 2020 13:14 | by Ashraf Laidi
    In a phase when unwinding of carry trades and risk-repositioning dominate FX markets, beware from excessive divergence from the data.
  • Forex Brokers' Share Price YTD & Since 2019 Chart

    Forex Brokers' Share Price YTD & Since 2019

    Feb 19, 2020 11:43 | by Ashraf Laidi
    CMC Markets' share price performance maintains the lead among major forex brokers since our last update six weeks ago.
  • Forex Brokers' Share Price Performance Chart

    Forex Brokers' Share Price Performance

    Jan 7, 2020 11:17 | by Ashraf Laidi
    The latest on share price performance of major forex firms shows CMC Markets in the lead, up 34% since January 2019, followed by IG Markets' 20% and Swiss Quote at 9%.
Hot-Chart Archives
Comments (Showing latest 0 of 0) View All Comments