the German DAX 30 index managed to bounce at the key support support level (blue) and 50% Fibonacci retracement level of wave 4 vs 3, which is keeping the uptrend alive.
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The DAX 30 is now approaching the previous top, which is a critical resistance zone. A bullish breakout would confirm the expected wave 5 (purple) of wave 3 (pink) pattern whereas a bearish push below the 50% Fib invalidates it and indicates a reversal.
The DAX 30 broke above the smaller resistance trend line (dotted red) as well and therefore seems to be building a wave 3 (blue) on a smaller time frame. The important level to keep an eye on is the 50% Fibonacci retracement level of wave 4 vs 3 (blue) because a bearish break invalidates the wave wave pattern and could be an early reversal signal. A bullish break above the top of current wave 3 (blue) confirms the uptrend potential towards the Fibonacci target levels of wave 3 vs 1.
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