Last week in the stock markets began with a strong increase, while the bulls became breathless with time. As a result, we saw a spike turn into ever greater disappointment and a bull-trap on many major indices.
One of the examples is the DAX, where buyers undertook to cross the resistance zone in the area of 12900-13000 points. The result of this test can be seen in the shape of the weekly candle. Its location, especially in this context (failed breakout), is now a serious challenge for the bulls. Adding to that the scale of growth we’ve been on since the low in March, I would definitely consider the risk of more serious profit taking.