? DAX30 Close to Completing Final Wave-E of Triangle ?

August 9, 2018

3 min read

Hi traders,

The German index DAX30 could soon restart its uptrend because price getting close to completing a contracting triangle continuation chart pattern. Price is now in the final swing of the triangle, which is the wave E (pink).

DAX30

4 hour

DAX could already have completed the wave E (pink) if price manages to break above the resistance trend line (red) and 100% Fibonacci level of wave X vs W but it seems more likely that price will expand the wave E (pink) via a WXY (purple). A bearish break below the support (blue) trend line would indicate a potential continuation towards the Fibonacci targets of wave E vs D.

Day

The DAX index seems to be confirming a triangle chart pattern as price is completing a wave D and E (pink). A break below the 100% Fibonacci level of wave E vs D invalidates the potential wave E (pink) whereas a bullish break above resistance (red) could confirm a bullish breakout (blue).

Week

The DAX index is building a correction after a strong uptrend, although the support and resistance trend lines do indicate a weakening of the bullish momentum. The next high could end at the resistance trend line and eventually build a rising wedge reversal chart pattern.