Thursday, January 12, 2012

Dax resistance / support 12.1.2011

Dax broker up the descending trend line and has now been trying to push up through strong resistance area 6170-6190 and Fibonacci at 6203.

In a shorter term it looks that Dax should go lower (and attract more institutional investors to buy) if it wants to go higher. 6050-6080 would be fine. Below 6000 the picture is starting to look bearish and the gaps up  would have a exhaustion meaning and confirmation for a trend reversal.

I have been watching US markets closely lately, because it is obvious that is has been keeping the stock market up. S&P500 has already made higher level and is now trying to push up even this would be perfect level to make a trend reversal.

It also seems that money inflow hasn't been strong anymore. Money outflow at these important resistance areas could definitely trigger a decline in stocks.