DAX – Breaking a head and shoulders top

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Monthly: Formed an Ending wedge pattern. Bearish divergence can be seen on the monthly chart (the chart makes a higher high while the relative strength index makes a lower high). The measured move target is 8700

Weekly: Looks to be forming a bearish Head and Shoulders pattern. Current price faces trend line support at 11550. The most interesting factor about this time frame is that 261.8% extension of the 13601-11703 move is located just below the aforementioned measured move target at 0.8631

Daily: Holding within a bearish channel formation. Trend line support has resulted in a mild bounce higher (from 11400). However, a previous area of support (that now becomes resistance) at 11800 is holding back buyers. Selling close to current levels offer ample risk /reward.


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