Elliott Wave View on DAX suggests that the sequence in the Index from December 27, 2018 low remains incomplete. On the short term chart below, the pullback to 11878.98 on October 4 ended wave (2). The Index resumed higher in wave (3) and the rally is unfolding as 5 waves impulsive Elliott Wave structure. up from Oct 4 low, wave ((1)) ended at 12097.4 and wave ((ii)) pullback ended at 11933.02. Index resumed higher in wave ((iii)) towards 12682.40 and wave ((iv)) pullback ended at 12603.83. The last leg wave ((v)) ended at 12814.49 and that ends wave 1 in higher degree.
Wave 2 pullback has also ended at 12603.17. Index is now in wave 3 of (3) with internal subdivision as another impulse. Up from 12603.17, wave ((i)) ended at 12986.49 and wave ((ii)) pullback ended at 12792.56. Index resumed higher in wave ((iii)) towards 13300.75 and wave ((iv)) ended at 13144.09. Near term, while dips stay above 12792.56, expect Index to extend higher in wave ((v)) of 3. We don’t like selling the Index. If pivot at 12792.56 low gives up, then DAX may have ended wave (3) at 13300.76. In the event that pivot at 12792.56 fails, the Index can see a larger pullback in wave (4) to correct cycle from October 4 low before the rally resumes.
DAX 1 Hour Elliott Wave Chart
