News & Analysis
GER30 – Flag Pattern Consolidation or Distribution?
The GER30 has been trading range bound for seven sessions so far. Positive leads from the US and Asian have so far been unable to force a breakout. These positive leads may have been offset by recent events in Spain. As a consolidation pattern, the length hasn’t become drawn out yet; as distribution, it’s possible to say that the width is a faction slim.
Markets, as we all know, rarely follow or produce perfect text book setups. From a trader’s point of view, both sides of the coin look fairly positive at the present. If this is a flag, it is possible to see a breakout in the next several days. The longer it continues to trade range bound, the stronger the chance it may look to test lower from buyer exhaustion.
Chart snapshot for GER30 Daily shown below.