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FxWirePro:DAX30 forms Bearish Cypher pattern, good to sell on rallies

  • Harmonic pattern formed –Bearish Cypher Pattern
     
  • Potential Reversal Zone (PRZ)- 11892
     
  • The index has formed Bearish Cypher pattern in the hourly chart and any trend reversal can be seen only above 11892.
     
  • DAX continuously showing its winning streak for the past five trading days. The index jumped from the low of 11463 which was made on Feb 7th 2017 and jumped till 11812 yesterday. It is currently trading around 11767.
     
  • On the higher side ,11892 (Jan 26th high) will be acting as major resistance and any break above will take the pair to next level till 12000/12155 (161.8% retracement of 11892 and 11463).
     
  • The index immediate support is at 11670 (200- H MA) and any break below will drag the DAX down till 11595 (61.8% retracement of 11463 and 11812)/11450 (trend line joining 11401 and 11444).

It is good to sell on rallies around 11770-11800 with SL around 11900 for the TP of 11400/11190.       

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