the German DAX 30 index seems to be building a bullish wave 5 pattern (purple), which means that the current pullback is likely to be a wave 4 (purple) retracement as long as price stays above the 50% Fibonacci level of wave 4 vs 3.
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A bullish continuation on the DAX 30 index could confirm the expected wave 5 (purple), which could be part of a larger wave A for instance. For the moment, the most important wave outlook however is the expected wave 4-5 (purple). The is wave pattern is unlikely if price breaks below the 50% Fib, which in that case makes a bullish ABC wave pattern (not 123) the most likely scenario.
The DAX 30 index seems to be completing 5 waves (green) which could belong to a wave 1 (blue) of wave 5 (purple). A break below the support trend line (blue) would confirm the end of the bullish swing and the potential start of a corrective bearish swing as part of wave 2 (blue). The wave 1-2 pattern is valid as long as price stays above the 100% Fibonacci level of wave 2 vs 1.
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