Home Ellliott Wave: DAX Gains Will Slow Down in Start Of

Ellliott Wave: DAX Gains Will Slow Down in Start Of

Traders who are positioned Long on DAX or any other major indices, may look to start booking profits, as index is trading in a wave (5) and approaching its 7140-7180 target/resistance zone. This its a final sub-wave of a five wave rally shown from 5327 August 2010 lows, so any gains will likely slow down very soon, which is also confirmed by a bearish divergence on the RSI which shows that bulls are already loosing strength.

dax elliot wave

In Elliott wave theory a turning point, at least corrective follows after every five wave rally. In fact, we anticipate some more important, larger turning point in 2011 from the highs, since we believe that gains from August 2010 is a wave C rally, part of a corrective structure that started already in March 2009.

Guest post by  Gregor Horvat

With this being said, investors should look for safe investments such as Japanese yen and US dollar, a currency that should get even stronger against the weakest performer in 2010, the Eur!

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Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!