DAX recovered above medium-term support at 9700. This is not just World Cup euphoria as the Footsie displays a similar rise. Follow-through above 9800 would suggest another test of 10000, but declining 21-day Twiggs Money Flow, below zero, indicates medium-term selling pressure. Reversal below 9700 would confirm a correction to the primary trendline at 9500. Breakout above 10000 is unlikely at present, but would indicate an advance to 10500*.
* Target calculation: 9750 + ( 9750 – 9000 ) = 10500
The Footsie shows a similar broadening wedge to the DAX, but Thomas Bulkowski warns they are unreliable continuation patterns. Recovery of 21-day Twiggs Money Flow above the descending trendline would indicate that selling pressure is easing. Reversal below 6700, however, would confirm a correction. Recovery above 6880 is unlikely at present, but would signal an advance to 7200*.
* Target calculation: 6800 + ( 6800 – 6400 ) = 7200