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Elliott Wave Analysis: DAX Is Trading In A Correction Within Uptrend

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May 04 2021

DAX is clearly bullish and in an impulsive fashion in the middle of a higher degree uptrend, which we currently see it's slowing down with slow and choppy price action, thus it looks like a nice corrective development for wave 4).

Well, wave 4) usually retrace for 38,2% Fibonacci retracement of wave 3) and if we consider that corrections are made by three-waves then we can assume that pullback is not done yet and that price may test 15k psychological level where wave 4) can be similar in distance compared to wave 2). All these comes in around important black trendline support also visible on a daily time frame chart so for now we should realize that bulls are still here, and ideally ready for more gains into wave 5) of 3, but after A-B-C correction in wave 4) fully unfolds.

Keep in mind that bullish trend would be invalidated only in case of bigger decline and sell-off below 14000 level!

Trade well and all the best!




 

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