Looking at the German DAX index we could spot a potential V-shape reversal pattern. DAX has reached the target for the bears which was mentioned in our previous analysis at 11545. Since then the market bounced back. It seems that the worse Q4 2020 in the German economy has been discounted by the market and currently the index is trying to evaluate the rebound in the economy in Q1 and Q2 2021.
However, from the technical point of view, the key resistance has been tested and the market may retrace back to potential support set be previous low and by the bullish gap. The area 12568 - 12313 looks interesting. There is also a possibility of creating a potential inverted head and shoulders pattern before another upward movement.
________
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
However, from the technical point of view, the key resistance has been tested and the market may retrace back to potential support set be previous low and by the bullish gap. The area 12568 - 12313 looks interesting. There is also a possibility of creating a potential inverted head and shoulders pattern before another upward movement.
________
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
