the German DAX 30 made a strong rise after completing a bearish ABC (blue) zigzag pattern within wave B (purple). The bullish price action could be part of a wave C (purple) but a resistance trend line (red) stands in the way of further gains.
The DAX 30 could be ready for a new rally if price is able to push through the resistance zone. A potential bullish breakout is likely to aim at the Fibonacci levels as the next targets.
The DAX 30 seems to be completing a wave 3 (green) pattern. This impulsive wave could push higher before making a correction within wave 4 (green). The Fibonacci retracement levels of wave 4 vs 3 are expected to act as support and stop price from falling. A bullish bounce could confirm the start of a wave 5 of a larger wave 3 (blue). If price does break below the 61.8% Fib, then a different wave count is becoming more likely.
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