Germany is Ready to Pump You Up

• Posted by Greg Harmon
• on May 7th, 2013

Hans and Franz got the reputation for pumping iron, but the German DAX is breaking to new all time highs as well. The monthly chart below shows it has been in an ascending triangle for 13 years as it approaches the top rail for the third time. This time the Relative Strength Index (RSI) is rising and not overbought like the last two times and the Moving Average Convergence Divergence indicator (MACD) is rising and not

near the prior extremes. Will it push through this time? if it does it carries a target on the triangle break to 13,850. That leaves a lot of time to get in. But you cannot invest in the German market directly? That’s ok, the Germany iShares, $EWG, is also on the verge of a breakout. This is out of a symmetrical triangle with

an upside target of 44, with resistance at the previous highs a long the way. Lots of time there too. Why is one a Ascending triangle and the other a symmetrical triangle. The easiest explanation is that the $EWG charges management fees. A very interesting pictorial on how fees can impact your return.

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