Dax-The 8000 level targeted in spite of Trump hype
Date: 11th November,2016 by Timothy Straiton
It seems countless market participants have been caught with their pants down, having expected Donald Trump's surprise election win would trigger a stock market crash. The subsequent short-covering episode has left this market more or less where it was before pandemonium broke loose. The current level at the time of writing is 10650, trading above the rising 40 week moving average of 10114 and above the monthly pivot level of 10624. Based on the fact that the 30year US tresury bond has broken long-term support, signalling that global interest rates are likely to rise from current levels, we expect this market to head for long-term support at 7989, a level which coincides with the Fibonaccci 50% retracement based on the 3588 - 12390 range stamped out since March 2009. A break here may well herald a dive to 6950, which corresponds to the Fibonacci 61.8% retracement from the high of the same range.
The above represents the opinion and analysis of Mr Timothy Straiton, based on data available to him, at the time of writing. Mr.Straiton's opinions are his own, and are not a recommendation or an offer to buy or sell securities.
Mr.Straiton is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr.Straiton recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified market analyst with over 30 years experience, Mr.Straiton is not a Registered Securities Advisor. Therefore Mr.Straiton's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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