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Weekly Pattern On Dax Shows Room For 14k

Dax is trading lower or sideways I should say since 2018, and at the moment it is in strong negative correlation with SP500 if we consider that US stocks are at ATH. But this divergence has been the case several times through the past few years so this is not any real big issue yet, but when global stocks do not agree or move the same it may be an evidence that market is maybe approaching a top that can be seen in years ahead.

However, before I may consider a top I have to see a completed pattern. But when looking at the trend from 8700 area I do not see five waves up yet, so it makes me think that reversal down from the January of this year is wave IV. This is a pause within an ongoing trend, so I assume that the fifth wave is still coming. The only question is if this new leg up will come from a triangle or after a deep A-B-C pullback in wave IV? In either case, I think it’s worth to keep an eye for evidence of a bullish continuation, after A-B-C-D-E sub waves if 11700 holds, or from 11280 if the mentioned swing is broken. Time is needed in both cases as corrective set-back is not done yet, but I remain bullish for 14000-15000 while the market is above the lowest trendline of an 8-year old channel.

Trade well,
GH

German DAX, Weekly

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!