DAX shows a bullish sequence from December 27, 2018 low favoring further upside. Near term, the pullback to 11877 ended wave (2). Index has resumed higher in wave (3). Wave 1 of (3) is in progress and unfolding as a 5 waves impulse Elliott Wave structure. Up from 11877 low, wave ((i)) ended at 12097.43 and wave ((ii)) pullback ended at 11933.02. Index then resumed higher in wave ((iii)) as an impulse in lesser degree. Dips in wave ((iv)) ended at 12603.17, and wave ((v)) of 1 should end soon with 1 more marginal high.
The Index is close to reaching 100% extension from August 15, 2019 low at 13111 – 13401. This will be a good area to end wave 1 and see a 3 waves pullback. Once wave 1 is complete, DAX should pullback in wave 2 to correct cycle from October 4 low (11877.07) before the rally resumes. We don’t like selling the Index. As far as pivot at 11877.07 stays intact, we expect dips to find support in the sequence of 3, 7, or 11 swing for more upside. Potential target higher is 100% Fibonacci extension from December 27, 2018 low which comes at 13655 – 14217 area.
DAX 1 Hour Elliott Wave Chart
