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Andrew’s Pitchfork Analysis: DAX Prices Have Fallen

Published 12/01/2016, 07:04 AM
Updated 07/09/2023, 06:31 AM

In the month of November, the sideways phase in the DAX, which has been in existence since August, pushed on forwards. On 04.11., the DAX recorded prices below the 200-day line (EMA) for one day, only to then sharply increase once again in the run-up to the U.S. election.

During the announcement of the results, the DAX marked a new low beneath 10,000 points, and then very quickly rose back up again. It was once again able to test the old highest prices at 10,800 points, but not to go beyond them. A strong resistance has now formed here. In the last few days, the prices have fallen to the area around the 10,600 points. The current sideways impulse from 10,200 to 10,800 points could now decrease a little in the direction of 10,400 points due to the rising EMA 200.

DAX Daily Chart 10/2015 – 11/2016

Chart: AgenaTrader

In the 1-hr chart, we can see a slightly falling trend channel, which has characterized the price development since 14.11.2016. This sideways phase could now continue to endure until we observe a sustainable breakout from this trend channel. As long as this does not happen, the prices should continue to ricochet off the lower limit at approx. 10,560 points and the top at approx. 10,760 points (image 2).
DAX 1 Hour Chart 11/2016 – 11/2016

Chart: AgenaTrader

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