The end of Wednesday’s session brought a sweet bullish reversal for global indices, which confirmed the defense of crucial mid-term supports. That should have given us significant optimism on Thursday morning but today buyers seem rather skeptical and they aren’t following that bullish sign from yesterday, at least not yet. Maybe it’s because of the fact that on both major indices; the DAX and S&P 500, we can spot head and shoulders formation in their late stages – as in finishing the right shoulder.
Let’s start with the DAX, which seems to have rounded the top of the right shoulder and is now heading to test the neckline. That would mean a short-term sell signal. In the mid-term, as long as the price stays above the neckline, the sentiment is still positive as we have to remember that the price escaped to the upside from the long-term symmetric triangle pattern.
The SP500 is going through a similar situation as the DAX but here we do have two crucial supports. The first one is the neckline – which is dynamic - and the second one is horizontal on the 3155 level. As long as the price stays above those two, sentiment is positive.
We’ll finish with a quick look at the EUR/USD, where the price smoothly moved from making lower highs and lows to higher highs and lows. Today, buyers are trying to break the crucial horizontal resistance of 1.1345. The first attempt was rather unsuccessful as it met a decisive counter-attack. So, watch out for a false breakout, which can be a very negative sign here.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Another Bearish Pattern On S&P 500, DAX
Published 07/09/2020, 05:45 AM
Updated 01/03/2021, 09:10 AM
Another Bearish Pattern On S&P 500, DAX
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.