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On the daily chart of German dax we can see the price is nicely rising over the cours of this year and last year. We see a bullish cycle in the making with the price specifically trading at the end of a higher degree wave III. Once wave III fully unfolds, a new minimum three-wave reversal lower may come in play as in wave IV, that can later search for a base near the 11461/11916 zones of former degree wave fours. On that note, we know that wave four corrections can take longer periods of time to fully develop, which means this reversal can take quite longer than the temporary correction within wave II that unfolded at the end of June of 2016.

German dax, daily