German DAX Could Be Facing A Reversal 

German DAX 2

Gregor - Author BIO photoGerman DAX has been trading south for the last few weeks but it can be only a temporary weakness if we consider that big trend is up after a three wave drop from April high to September low at 9300. We labeled this as big zigzag that represents A of a complex correction, while bounce to 11418 was wave B. As such, move down from 11411 was wave C as part of a flat correction that can be finished with recent leg up to 9600. That said, be aware of more gains ahead.

German DAX, Daily

German DAX 1

On the lower time frame, DAX is turning up, with recent push above the trendline resistance of a wedge pattern which suggests more gains ahead as rally from the low also has an impulsive personality. However, nothing moves in straight line so we are tracking a corrective set-back now that can finish at 9000 which can be ideal zone for a bounce, from a technical as well as psychological point of view.

German DAX, 4H

German DAX 2

By Gregor Horvat

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