German DAX: from big picture to small

March 6, 2017 09:47 AM
Elliott Wave Analysis: German DAX

On the daily chart of German DAX, we are observing a nice higher degree impulse in motion, with price particularly trading at the end of blue Wave 3 of three. If that is the case, then red sub-wave 5) may experience some resistance in days ahead and may expect the price to fall into a corrective reversal within the upcoming blue wave four. If that were the case, then the DAX may be in for a slow and choppy ride within the upcoming weeks.

German DAX, daily

Regarding the 4-hour chart, we can see that German DAX has been trading higher last week but it stopped at the upper side of an ending diagonal where it may be an important reversal for the next few days. In fact, we see a nice decline now back below 11950 which suggests that top can be put in place. Further, weakness and a break below Wave 4 may even cause a decline back to 11400 area this month.

German DAX, 4-hour

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/