Intraday Market Thoughts

Could we see 12700?

by Ashraf Laidi
Apr 12, 2019 12:20

As global indices deepen their ascent into the green for the year, the path of least resistance appears increasingly to be for higher upside. Volatility is low, the US economy is appropriately neither too hot, nor too cool and the Federal Reserve appears to be more preoccupied with dealing with Trump's non-banking appointees than about raising or cutting interest rates. One case in point is the DAX30 index. After having completed a spectacular head-&-shoulder formation (predicted back in October for our subscribers and again in November in 5:40 mins of this video), the index is set to retest 12200 as a minimal upside target. But what comes next? 12500, or even 12700 are equally plausible. Three contributing ingredients emerge from the following: Oil made a flawless 50% increase from its December lows and shows no signs of exhaustion (RSI & stochastics appear decently positioned), while bond yields are rising from a very..very low point. Finally, the US dollar repeats its pattern of rebounding off the range lows but failing to break above key resistance. Two weeks ago, we said on this piece that April was the best month for equities. 12 days into the month and the pattern remains intact. Earlier today, a new Premium trade was posted for subscribers backed by 2 charts and 5 notes.

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Could we see 12700? - Dax Weekly Apr 12 2019 (Chart 1)


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