In this technical blog, let’s take a look at the $DAX instrument Elliott wave forecast we had since the beginning of 2017. Below is the $DAX 1/07/2017, 4 hr weekend updated chart suggesting the rally in DAX from 11/9/2016 is unfolding as a Elliott wave triple three structure (also known as 11 swing sequence), where wave (W) ended at 10798, wave (X) ended at 10400, wave (Y) ended at 11487, and second wave (X) ended at 11404.3. With a break above previous wave (Y) at 11487, instrument is showing 9 swings up from 11/9/2016 low, which is incomplete Elliott wave bullish structure in the Index & needed more upside as far trading above 11404 low. Thus our strategy was to buy any dips in sequence of 3, 7 or 11 swings as far as pivot from 11404 low stays intact for resumption of the trend higher or for 3 swing bounce at least to allow our member’s to create a risk free position.
DAX 4 Hour, 7 January 2017
DAX 1 Hour, 9 January 2017
Index made the 3 swing pullback within ((x)) to correct the cycle from 11404 low & our strategy was to buy the index when price reaches the 50-618% fib ret area (11525-11496).
DAX 1 Hour, 12 January 2017
Since then Index bounced strongly from 50-618% fib ret 11525-11496 (blue box) area as expected and made new high above ((w)). Break above ((w)) peak makes it 5 swings up from 11402.54 low and now Index is bullish against ((x)) low @ 11519 in the first degree. Index has pulled back in 3 waves and reached 100% extension of w-x at 11562. Ideally it should hold 11519 low for extension.
DAX FLAT wave ((x))
If 11519 pivot breaks, then it can become a FLAT pattern in wave ((x)) before turning higher again provided pivot at 11402.54 low remained intact. Only a break of pivot at 11402.54 low would result in a larger pull back to correct the cycle from 12.2.2016 low.
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