πŸ”₯ DAX30 Wave-4 Pullback Testing Shallow 23.6% Fib Level πŸ”₯

3 min read

Hi traders,

the German DAX 30 index made a critical bullish breakout above the long-term resistance trend line (dotted red) last week. The bullish momentum is expected to move higher and test the Fibonacci targets of wave 5 vs 1+3.

DAX 30

Daily

The DAX 30 seems to be building an impulsive wave 5 (blue) which could be part of a larger wave A (blue) correction for instance. The main question is whether price is in a full uptrend OR has price only completed a first correction (a wave W pink) and is it still in a larger sideways correction? The current wave analysis favors a larger correction, which means that price is expected to build a bearish wave B once it completes the bullish wave A (purple).

4 hour

The DAX 30 index has made several bullish breakouts above the resistance trend lines (dotted red), which seems to confirm bullish momentum. The recent high has likely completed a wave 3 (orange) within wave 5 (green) and price is now testing the Fibonacci retracement levels of wave 4 vs 3. A bullish bounce at the 23.6% or 38.2% Fibonacci levels and bullish breakout above the resistance trend line (red) could confirm this wave 4 pattern (orange). The main target in this case is the 61.8% Fibonacci level of wave 5 vs 1+3.

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Good trading,
Chris Svorcik
Elite CurrenSea

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