Chart Book
PUBLISHED : Monday, 11 August, 2014, 3:56am
UPDATED : Monday, 11 August, 2014, 10:45am

Chart of the day: DAX tops out


Nicole Elliott is a technical analyst with 32 years experience of financial analysis working for some of the world’s biggest investment banks. Her key expertise is in foreign exchange, interest rate products, bullion, indices and commodities markets. Nicole is a regular TV commentator on financial markets and has authored books on technical analysis for financial professionals. She has a BSc from the London School of Economics.

The fragility of Europe's recovery is clear in the cautious rally that has run on Germany's Dax stock index. Support at 9,000 points formed the base of a broadening top to a series of higher highs and eventually a record 10,050 points. But a 10 per cent fall since Friday's close below 9,000 points and the previous week's close below the 200-day moving average is all very bearish. A cross with the 50-day moving average would give another bearish signal. The Dax could be headed to 8,100 points - the 38 per cent Fibonacci retracement of the high of March 2000 - with the psychological 8,000 points next in line before possibly the 50 per cent retracement mark at 7,500 points.

Nicole Elliott is a technical analyst



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Chart of the day: DAX tops out

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