The Dax has been outperforming the other Western markets in a striking way over the last few months. Its reaction to the recent wobble arising from Euroland and Korea further has underlined the differences still further…
The Technical Trader’s view:
WEEKLY CHART
The succession of Prior Highs under the market underpins the Germans in a way that no other major Western market can compare with.
Note too that the drive up through the Prior Highs coincides with the break of the 61.8% retracement of the whole bear move from the Highs of 2007 (8005) and the lows of 2009 (588.50).
Look closer.
Close inspection of the Dec contract reveals a continuation Triangle – which has completed and whose minimum move is up as far as 7150 or so.
The market has a good deal further to go before losing momentum.
DAILY CHART
The move up from the completion of the continuation Triangle is well structured – the Prior Highs of 6561.50 and 6684 are acting as good support.
High volume down-days have been matched by high volume up-days.
The market is well set
Mark Sturdy
John Lewis
Seven Days Ahead
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