Monday, October 10 2016
The scenario shows no substantial changes. We are waiting for the finalization of the correction initiated on August 15th. At DAX and Eurostoxx 50, the trend is bullish in the short, mid and long term; but it lacks strength.
DAX-Xetra. Daily chart.
This week’s trend chart shows how limited the situation’s progress was after October’s first week. There is a bullish advantage in the long, mid and short term, but we are waiting for wave x3, which will consolidate the trend in weekly charts, and will provide DAX with the strength it needs to reach its price objective, in the 10750-10800 points zone.
Eurostoxx 50. Trend Chart.
At intraday, as long as DAX stays above 10370, it will most probably unfold a new upward wave which will take it above August’s maximums. The first objective at intraday, as long as it holds above Friday’s minimums, is around 10750.
DAX-Xetra, Future. 15 minute chart.
US Equities.- Today we will go over USA’s semiconductor sector again; we talked about it in an early September report (read September 5th Report).
NASDAQ is still above the historical year 2000’s resistance, pushed by semiconductor sector companies.
Nasdaq 100. Daily chart. MACD.
USA’s Semiconductor Sector. 2016 compared variation (%).
CISCO’s pattern analysis (read September 1st Cisco Report) gives a price objective zone around $60 for the wave we are expecting to unfold in the coming months.
Cisco Systems. Weekly chart. Mª José Rubia’s count.
We are expecting a similar development with INTEL. According to this scenario, both would be following Analogic Devices’ path.
At European stock exchanges, within the semiconductor sector, we like the German Infineon–a stock we included in our suggested stocks since mid July. See chart below.
Intel. Weekly chart. Mª José Rubia’s count.
Analogic Devices. Weekly chart. Mª José Rubia’s count.
This is the strength DAX is lacking and that many of its companies are showing. INFINEON got out of the lateral movement after thirteen years (remember the MUENCHENER pattern), and we believe we have to look for corrections in order to join the trend.
Infineon. MACD Monthly chart. ADX.