This month, DAX broke above 7/4/2019 peak (12656.05) and even though it’s still below it’s peak seen back on 1/23/2018 (13596.89), series of higher highs from 12/27/2018 (10279.20) calls for more upside. In this blog, we will take a look at two different degrees of bullish sequences in $DAX and explain why we believe the Index is headed to new all time highs. We will also look at the target area which could be reached within the next few months. Let’s take a look at the daily chart below:
DAX Daily Elliott Wave Chart 10.21.2019
Chart below shows the peak at 1.23.2018 (13596.89) to be the current all time peak. Down from there Index did a Zigzag Elliott Wave correction to 12.27.2018 (10279.20) low and turned higher. Initial rally from 12.27.2018 low to 7.4.2019 peak was a 5 waves Elliott Wave Impulse and we have labelled that as wave ((A)) or ((1)). This was followed by a sharp 3 waves pull back which finished on 8.15.2019. Up from there, Index rallied in 5 waves and finished wave (1) on 9.13.2019 (12494.25). Then it pulled back in 3 waves and finished proposed wave (2) in 10.4.2019 (11878.98) and went on to break above 9.13.2019 peak but not only this, it also managed to break above 7.4.2019 peak. Break above 7.4.2019 creates a 4 hour bullish sequence against 8.15.2019 low and thus as dips hold above this level, expect the Index to continue higher.
DAX 1 Hour Elliott Wave Analysis 10.21.2019
Chart below shows the rally from 10.4.2019 low has unfolded in 5 waves and should complete soon. However, more important thing is that break above wave (1) high has created a bullish sequence against 10.4.2019 low and thus we now have two degrees of bullish sequences, one from 12.27.2018 low and second from 10.4.2019 low. We don’t like selling the Index and expect wave 2 pull back to find buyers in the dips in 3, 7 or 11 swings.
Bullish sequence from 12.27.2018 low has a measured move extension target between 13658.06 – 14224.05 and in extension 15140.19. 13658.06 lies above 1.23.2018 (13596.89) peak which supports the case for DAX Index looking for a break to new all time highs.Back