Elliott Wave Analysis: German DAX Looking Higher In The Long Run
German DAX has been trading south for the last year or so but it might have been only a temporary decline if we consider that structure is pointing up because of overlapping decline from 12424 to 8690 low, labeled as an A-B-C correction. That said, traders should be aware of even higher prices ahead as DAX recently completed a three wave set-back in blue sub-wave 2 and later broke above the upper corrective channel line which could open the door for more gains in weeks to come.
That said at the moment we see price trading higher around the 10615, probably in red wave 2) after recently completed red wave 1) around the 10803 area.
German DAX, Daily
On the lower time frame, DAX is turning down from above 10800 and now trading around the 10584 area, which suggests that market may have seen a top at 10801 for black wave 5 of 3). If that’s the case then a new corrective set-back is now in progress, ideally down into red wave 4) pullback with three sub-waves headed to around 10200-10300 area where we would look for a new evidence of a bullish turn.
At the moment we see a nice three sub-wave move that had unfolded in black wave B, which seems to have found a resistance and a turning point lower at the 78.6 Fibonacci ratio. That said more weakness could now follow into wave C.
German DAX, 4H
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