German DAX Index closed at 6950 (Close on Nov 16, 2012). We attach our monthly chart below:
If we read above chart we see Dax is facing strong resistance from falling trend line connecting 2007, 2008 and 2011 highs. However, It is too early to conclude Dax is going lower and make a strong bearish view at least now looking at current PE below 14. We must watch rising trend-line from 2011 lows which may give support to Dax in next few weeks. However, If we see Dax below 6500 we can make a case for extreme bearishness.
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2 comments:
Just like you mentioned, DAX has smartly moved to 7300 zone after briefly touching 6950. I just had a quick look at the monthly charts. It is within striking distance of its 2007 highs. Further more it close to approching a triple top on DAX spreach across 13 years 2000, 2007 and 2013 (assuming it happens). Though am no technical expert, but my guess is that whichever way DAX goes (break up or breaks down from all time highs) and Germany being the growth engine of Europe, I think we are headed for some major event sometime in late 2013.
Roberto
Sandriano,
You could be right about some major event happening in the world in late 2013 or early 2014.
I personally expect Dow, Dax to make new all time highs in Q1 CY2013 (This has been my view since Jan 2012).However, I do NOT expect sustaining of these highs. World may see very difficult times from there on. Buy Crude/Gold when Dow is at new high :-).
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