German DAX Could Be Facing A Reversal
German 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
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
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