10.10.2011 - Dax, something is going on!

Right now the 5.800 point area is being tested on the Dax. This mark has significance because it's where the EMA 50 is, which by far has not been reached in the past 2 months.

RSI is trending up as does the price. Price actually has already crossed August's downtrend cap. 2 reasons which support the theory of an upcoming rally.






This holds opportunities for aggressive traders:

• Trailing Stop-Loss at 5.600 points - around the last periodic high
• Maximum Profit-Target at 6.400 points

As the economic situation cannot be called stable in Europe I would not solely rely on chart analysis. We could be seeing a false breakout. 

Patience is a good advice. What distinguishes a bear from a bull market is that a bear market is much faster. This means even if we see a breakout this is not a missed opportunity because in bullish markets price tends to fall back in steps (Elliot-Wave Theory). 

So it is suggested that a breakout and the fall-back to the upper September-trend line should be waited for.