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DAX Corrective Rally May End Soon

German Dax has turned positive as expected in the last few trading days, after the market completed a five-wave decline in wave (A) last week. We know that after every five waves, the market will make a three-leg retracement, notice that the market already made three waves up from the low, so we must be aware of a new  bearish leg to the downside. Ideally, the market will find its footing around the current 10000 area this week.



This recovery at its late stages with the current black wave C as shown on the hourly chart below. We would not be surprised if the market will reach its climax in the next 24 hours. However, we need an impulsive drop back beneath 9800 to confirm end of a corrective recovery.

German Dax, 1h

Dax 1h


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!