does the Dax finished its corrective rise? This is expected for the DAX and then its return to fall again but the corrective rally is over.
This is what we will talk about in this report
All points on the DAX will be clarified
- First, the DAX dropped from 13380.00 to 13090.00 with a five-year bearish wave
- Secondly, we expect the index to decline with a five-wave as prices are below the high of 13380.00
Therefore it is preferable to look for a selling point on the index to target the main bottom over the long term
But a break of 13380.00 may continue to rise to 14300.00 and then reverse to the downside again
According to the wave analysis is the last five-way drop?
Yes, the recent decline is pentagonal, so the stability of the recent top at 13380.00 supports further downside
In the daily chart, we will see a clearer decline
We also note that the RSI is overbought on a daily basis and this supports the downside
Therefore, it is preferable to sell as the prices are below 13380.00 at the moment, but in case of breaking this level we expect to complete the rise
Daily chart of DAX movement
In the previous chart we can see the expected movement in more detail if the top holds and supports the downside as shown on the chart
We currently expect the index to have already completed the correction in wave B before completing the fall in wave C downward targeting the bottom five.
4 hour DAX chart
In the previous four-hour chart, prices are close to the 100-hour average
It is preferable to sell the next period on the index as the prices are below 13380.00 to target the main bottom on the index
In the shorter term, we see a five-wave downtrend, which supports the coming period
Sell recommendation on DAX
Stop loss: 13380.00
First target: 12800.00
Second goal: 12000.00
Third Goal: 11000.00