The DAX and Merklel Head Higher into Oktoberfest

It is time for Oktoberfest and German President Merkel cannot wait. Sure there has been 9 months of Brexit and Euro debate. But the world scene has been even more of a head ache with North Korea and the non-functional government of her US Allies. It is no wonder she chose “the big one please’. But one thing is going well. The German DAX has ended its pullback and started moving back higher.

The chart below shows the DAX starting higher in December last year out of a 3 month consolidation. That move found a top in May and the index went sideways for 2 months. In July it started lower in a channel. That drop was halted as it touched a 38.2% retracement of the leg higher and it started to reverse in late August. It has continued into the minor consolidation occurring now.

How far can it go? In the short run a move out of consolidation to the upside would give a target of about 13000. On a broader scale an AB=CD pattern gives a target to 14,530. Either one would mean a new all-time high and keep that smile growing on Angela’s face.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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