DAX Archives - Page 15 of 15 - the patient investor

September 19, 2011

DAX key reversal; FTSE rally fades

Germany’s DAX Index shows a strong key reversal [R] on the weekly chart. Expect a rally, but we are in a bear market and resistance at 6500 is likely to hold. Reversal below 5400 would warn of another down-swing.

DAX Index

* Target calculation: 5500 – ( 6500 – 5500 ) = 4500

The FTSE 100 fell at Monday’s open, but the weekly chart displays a particularly volatile consolidation edging higher. Breakout above 5400 would indicate a test of 5600/5700. Again, we are in a bear market; respect of resistance is likely and would warn of another test of 4800.

FTSE 100 Index

* Target calculation: 5000 – ( 5600 – 5000 ) = 4400

September 12, 2011

European indices warn of another down-swing

The German DAX Index broke support at 5500 to warn of a down-swing to 4500*. Declining 13-week Twiggs Money Flow below zero indicates strong selling pressure.

German DAX index

* Target calculation: 5500 – ( 6500 – 5500 ) = 4500

In France, the CAC-40 Index reversed below support at 3000, led by a sell-off in French banks. Expect support at the 2009 low of 2500, though the calculated target is even lower. 13-Week Twiggs Money Flow again signals strong selling pressure.

France CAC-40 Index

* Target calculation: 3000 – ( 3700 – 3000 ) = 2300

The FTSE 100 is consolidating above 5000, but is likely to be dragged lower if major European trading partners fall. Breach of support would offer a target of 4400*.

UK FTSE 100 Index

* Target calculation: 5000 – ( 5600 – 5000 ) = 4400

September 5, 2011

DAX breaks support

Dow Jones Germany Index broke support at 210/205 Monday, warning of another sharp fall as the ECB ramps up bond purchases and German participation in the bailout program is challenged in their High Court. Plunging 13-week Twiggs Money Flow indicates strong selling pressure. Target for the fall is the 2009 low of 150*.

DJ Germany Index

* Target calculation: 200 – ( 250 – 200 ) = 150

The DAX Index similarly broke support at 5500, offering a target of 4500*.

DAX Index

* Target calculation: 5500 – ( 6500 – 5500 ) = 4500

September 5, 2011April 18, 2024

European rally meets resistance

The FTSE 100 index is meeting selling pressure in its rally to test resistance at 5600, evidenced by tall shadows on the last two candles. Reversal of 13-week Twiggs Money Flow below zero would strengthen the signal. Failure of support at 4800 would offer a target of 4000*.

FTSE 100 Index

* Target calculation: 4800 – ( 5600 – 4800 ) = 4000

The DAX Index also displays tall shadows on the last two weekly candles. The rally to test 6400 is particularly weak, with decline of 13-week Twiggs Money Flow below zero warning of strong selling pressure. Reversal below 5400 would offer a target of 4400*.

DAX Index

* Target calculation: 5400 – ( 6400 – 5400 ) = 4400

The CAC-40 displays similar selling pressure. Breakout below 2900 would offer a target of 2500*.

CAC-40 Index

* Target calculation: 2900 – ( 3300 – 2900 ) = 2500

August 21, 2011

Europe crashes

Germany’s DAX Index is testing support at its 2010 low of 5400. 13-Week Twiggs Money Flow below zero warns of further selling pressure. Failure of support would offer a target of 4500*.

Germany DAX Index

* Target calculation: 5500 – ( 6500 – 5500 ) = 4500

France has fallen well past its 2010 low, testing support at 3000. 13-Week Twiggs Money Flow again warns of further selling pressure. Breach of 3000 would test the 2009 low of 2500.

France CAC-40 Index

* Target calculation: 3000 – ( 3700 – 3000 ) = 2300

Secondary markets are as badly affected. The Amsterdam AEX Index fell below its 2010 low, while 13-week Twiggs Money Flow below zero warns of selling pressure.

Netherlands Amsterdam AEX Index

* Target calculation: 300 – ( 340 – 300 ) = 260