By Andrew Nyquist
After charging higher, the German DAX composite index has spent the past five weeks consolidating gains. This action is reminiscent of a flag consolidation (bullish), however, the market also looks like it is waiting for a catalyst. I say this because 5 weeks of sideways action is starting to feel long in the tooth and if a catalyst doesn’t appear soon, the consolidation could be jeopardized.
Near term, 7200 is the level to watch. Secondary support resides around 7000.
More charts found here.
German DAX stock market chart as of October 22, 2012. DAX chart with trend lines and technical support levels. German stock market. DAX technical analysis.
No position in any of the securities mentioned at the time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.
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