DAX/CAC Technical Outlook:
- DAX H&S pattern could come to fruition
- CAC has big support and resistance to watch
The DAX hasn’t done a whole lot on a net-net basis since we looked at it a week ago. The same broad, potentially bearish, head-and-shoulders (H&S) pattern is still developing. The left shoulder and head are in place, but we still need a right shoulder to develop and subsequent break of the neckline before we can run aggressively with a bearish bias.
The right shoulder could still take on the shape of a rising wedge that provides short-term traders with a look first before the neckline down near 12400 is tested and possibly broken. The area around the neckline has both good price support and not too far below at 12162 lies the 200-day. A break below all thresholds at some point could lead to a strong move.
But before getting ahead