DAX Index Archives - Page 3 of 4 - Elliott Wave Forecast

TecDAX: Buying Opportunity in German Technology

September 20, 2020 By EWF Helgi

TecDAX is a stock index which tracks the performance of 30 largest German companies from the technology sector. Even though these enterprises are of a high economic importance, their market capitalization and the book order turnover are far below of that of the DAX index. The TecDAX is related to DAX in a similar way like NASDAQ is related to Dow Jones Industrial Average index.

From technical perspective, NASDAQ has been the strongest index in the US. As a matter of fact, it has provided high rewards for those traders who were buying the dips for more upside. One of the features of the market behavior is that weak indices remain weak and strong indices remain strong. The fact that NASDAQ has been outpacing other US indices makes it a good candidate to buy it again once the indices turn higher again. Similar strong uptrend can be also seen in a behavior of TecDAX. This index, therefore, allows entering the German technology sector by providing investors and traders with high returns and protecting them, at the same time, from the defaults originating from trading of single stocks.

TecDAX Monthly Elliott Wave Analysis 09.20.2020

The monthly chart below shows the TecDAX index $TDXP listed at Frankfurt Stock Exchange. From the all-time lows, the index price has developed a cycle higher in wave (I) of a super cycle degree. It has ended in November 2007 at 1060.35. From there, a correction lower in wave (II) has retraced part of the rise by printing a bottom in March 2009 at 387.50.

In 2013, TecDAX was able to make a higher high opening up a bullish sequence. As a matter of fact, it has extended from March 2009 lows far beyond 1.618. Therefore, the cycle higher is an impulse in blue wave (III). It has reached 3051.44 highs in September 2018. From the top, a correction lower has unfolded as an expanded flat which has found its bottom in March 2020 at 2127.05.

TdecDAX Daily Elliott Wave Analysis 09.20.2020

The daily chart below shows in more detail the $TDXP price action from the March lows. The advance is an impulse in red wave I which has ended in June 2020 at 3266.82. While below there, a pullback in wave II may find support in 3, 7 or 11 swings above the 2127.05 lows. So far, the correction unfolds in a manner of a double three pattern which is a 3-3-3 structure. As of right now, the pattern looks incomplete. The price can, therefore, fall lower towards 2807.92-2565.53 area to end the correction in wave II. There, buyers can enter the market for an extension higher in wave III of blue wave (V) to new highs. Alternatively, a bounce in 3 waves at least should happen.

As a consequence, TecDAX should furthermore surprise many investors and traders by pushing higher in another rally. In the same way as NASDAQ in US, expect TecDAX to remain the strongest German index.

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DAX Keep Finding Buyers in 3,7,11 Swings

September 4, 2020 By EWF Vlada

Hello fellow traders. DAX is one of the instruments that has been giving us a lot of good trades recently. In this technical blog we’re going to take a quick look at the Elliott Wave charts of DAX, published in members area of the website. As our members know, we’ve been calling rally in DAX within the cycle from the March low. In the further text we are going to explain the Elliott Wave Forecast and trading setups.

DAX 1 Hour Elliott Wave Analysis 08.27.2020

DAX is bullish against the 12633.7 low. Current view suggests DAX still can be doing double in wave ((ii)) pull back against the 12633.7 low. As far as the price holds below current short term highs, we expect to see another leg down toward 13006.8-12878.1 area ( blue box- buyers zone) . We don’t recommend selling it and favor the long side from the blue box. As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. Consequently, we expect to see at least 3 waves bounce from the blue box. As soon as the price reaches 50 fibs against the (x) high, we should make long positions risk free. ( put SL at BE).

DAX 1 Hour Elliott Wave Analysis 09.01.2020

We got double toward blue box – buying zone as expected. DAX found buyers there and gave us nice bounce. Rally from blue box was strong enough and broke above 50 fibs against the previous short term high, so we made our long positions risk free. Eventually DAX made strong decline and closed our long positions. As we put Stop Loss at the entry levels, trades are closed without any loss. Current structure is showing 7 swings from the peak, when next set of equal legs is reached at 12876.2-12706.7 ( buying zone). Consequently we like to be buyers there for proposed extension up or 3 waves bounce at least. Strategy is the same, as soon as the price reaches 50 fibs against the middle pivot, we will make long position risk free.

DAX 1 Hour Elliott Wave Analysis 09.04.2020

DAX found buyers at the blue box area 12876.2-12706.7 and as a result we got nice profits there. Current view suggests DAX is correcting the cycle from the 12633.3 low, and still can find buyers against that low for further extension up.

Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.

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DAX Reacting Higher Once Again From Blue Box Area

August 26, 2020 By Hassan Sheikh

In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of the DAX index. In which, the rally from 30 July 2020 low unfolded as an impulse 5 wave structure. Thus suggested that it’s a continuation pattern. And as per Elliott wave theory after a 3 waves pullback, it should do another extension higher in 5 waves impulse structure at least. Therefore, we advised members not to sell the instrument & trade the no enemy areas ( blue boxes) as per Elliott wave hedging remained the preferred path looking for 3 wave reaction higher at least. We will explain the structure & forecast below:

DAX 1 Hour Elliott Wave Chart

DAX 1 Hour Elliott Wave Chart from 8/20/2020 NY Midday update. In which, the pullback in wave ((4)) completed at 12246.60 low. Up from there, the index rallied in 5 waves impulse structure where wave 1 ended at 12799.21 high. Wave 2 ended at 12517.44 low, wave 3 ended at 13046.13 high, wave 4 ended at 12965.40 low. While wave 5 ended at 13101.12 and thus completed wave (1) of ((5)).

Down from there, the index made a 3 wave pullback to correct the short term cycle from 7/30/2020 low (12246.60) within wave (2). The internals of that pullback unfolded as a zigzag structure where wave A ended at 12797.52 low. Wave B ended at 13052.84 high and wave C was expected to reach 12750.11- 12562.46 100%-161.8% Fibonacci extension area of A-B. Then from there, the index was expected to start the next leg higher or to do a 3 wave bounce at least.

DAX 1 Hour Elliott Wave Chart

Here’s 1 Hour Elliott Wave Chart of DAX From 8/25/2020 Asia Update. In which, the index is showing reaction higher & breaking higher from the blue box area. Allowed members to create a risk-free position shortly after taking the longs at 12750.11- 12562.46 blue box area.

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Elliott Wave View: DAX Resumes Rally Higher

August 25, 2020 By EWF Hardianto

Elliott Wave View of DAX suggests the rally from July 30,2020 low has ended at 13101.12 high as wave (1). Up from July 30 low, wave 1 ended at 12799.21 high and wave 2 dip ended at 12517.44 low. Index then extended higher in wave 3 towards 13046.13 high. Afterwards, the Index did a pullback in wave 4, which ended at 12909.72 low. Finally, wave 5 higher ended at 13101.12 high. This final move completed wave (1) in higher degree and ended cycle from July 30 low.

Subsequently, Index corrected that cycle within wave (2). The correction unfolded as zigzag Elliott Wave Structure , where wave A ended at 12797.52 low. The bounce in wave B ended at 13052.84 high. Wave C then ended at 12632.46 low, which also ended wave (2) in the higher degree. The pullback reached the 100-161.8% extension blue box area. From there, Index has resumed the rally and extended higher. The rally in wave 1 has broken above previous wave (1) high, confirming that the next leg higher has started. Currently, wave 2 pullback is in progress. As long as 12632.46 low stays intact, expect the dips in 3,7 or 11 swings to find support for more upside. The minimum target of wave (3) is the 100-161.8% extension of wave (1)-(2) between 13498-14034 area.

DAX 30 Minutes Elliott Wave Chart

DAX Elliott Wave Video

$DAX Found Buyers After Elliott Wave Zig Zag Pattern

August 17, 2020 By EWF Vlada

Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of DAX, published in members area of the website. As our members know, we’ve been calling rally in DAX within the cycle from the March low. Recently DAX made pull back that has unfolded as Elliott Wave Zig Zag pattern . In the further text we are going to explain the Elliott Wave Pattern and the Forecast.

Before we take a look at the real market example, let’s explain Elliott Wave Zigzag.

Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.

DAX 1 Hour Elliott Wave Analysis 7.29.2020

The index is currently giving us pull back that can be unfolding as Elliott Wave Zig Zag. We got 5 waves down from the 13311.2 peak, which is labeled as first leg A red. Then we got 3 waves bounce in shallow B red recovery and break toward new lows again. Now we should be ideally doing C red leg. Correction still looks incomplete at the moment, suggesting we can get more short term weakness before rally takes place again.

DAX 1 Hour Elliott Wave Analysis 7.30.2020

Pull back looks incomplete at the moment. As far as the price holds B red pivot 1297.4 ,we expect to see 5 waves down n ((c)) leg , ideally toward 12427.6-12113.9 ( buyers area) . At that area we expect buyers to appear for proposed rally or 3 waves bounce at least. As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.

You can learn more about Zig Zag Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.

DAX 1 Hour Elliott Wave Analysis 8.4.2020

DAX found buyers right at the 12427.6-12113.9 ( Blue Box area). Pull back ended at the 12245.06 low. As far as that pivot holds, we would like to see further separation higher. We don’t recommend selling and favor the long side from the blue box. As the bounce has already reached 50 fibs against the middle pivot – (B) blue, members who took long positions should be risk free.

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Elliott Wave View: DAX Finds Support after Pullback

August 4, 2020 By EWF Hardianto

DAX 30 minutes chart below shows that the Index has ended the cycle from July 21 peak. The decline unfolded as a zig-zag Elliott Wave Structure. Down from July 21 high, wave (A) ended at 12811.44 low. The bounce in wave (B) ended at 12936.01 high. The Index then extended lower in wave (C), which ended at 12245.06 low. This completed wave ((4)) in larger degree. The correction reached the blue box area, which is the 100 – 161.8% extension of wave (A)-(B). From that blue box, the Index has turned higher. This allows buyers at blue box a risk free position.

Up from wave ((4)) low, the Index rallied higher in wave ((i)), which ended at 12524.75 high. The pullback in wave ((ii)) ended at 12318.22 low. Afterwards, the Index resumed higher in wave ((iii)), which remains in progress. As long as 12245.06 low stays intact, the dips in 3,7 or 11 swings are expected to find support for more upside. However, the Index still needs to break above July 21 high to confirm that the next leg higher has started. Otherwise, the Index can still do 7 swing correction in wave ((4)) before resuming higher again later.