German DAX Taking A Corrective Break – Elliott wave analysis

Intermediate

German DAX made a five-wave recovery from March lows and found a temporary top at 11240 level. We know that after a five-wave move, a temporary three-wave pullback may start developing. We already see a three-wave decline; however, price may still decline further into a wave C before, real bulls take over. Possible support can be at 10150 level, or lower at the 9670/9300 zone, where former gap, Fib. Ratios of 50.0 and 61.8, and the swing low of a former wave 2 sit. All can react as turning points for the price.

All being said, a recovery in five legs, and above the 10980 level would suggest a completed A-B-C move, and further upside.

German DAX, 4h

Dax chart

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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