DAX - Bearish Gartley could unfold on weekly chart
Rise in FTSE has helped German DAX move back above weekly 200-MA level today.
We could head higher to falling trend line resistance If the current week candle closes above weekly 200-MA and is followed by another closing above weekly 200-MA. Moreover,a rebound from the weekly 200-MA could translate into a rally to 10,846 (point D = potential reversal zone).
On the other hand, a weekly closing below 200-MA would reduce the odds of a Gartley formation and open doors for a drop to 8699 (Feb 2016 low).
We could head higher to falling trend line resistance If the current week candle closes above weekly 200-MA and is followed by another closing above weekly 200-MA. Moreover,a rebound from the weekly 200-MA could translate into a rally to 10,846 (point D = potential reversal zone).
On the other hand, a weekly closing below 200-MA would reduce the odds of a Gartley formation and open doors for a drop to 8699 (Feb 2016 low).
