Forex Trading Library

DAX – Mild 4th wave correction to sell into

3 326

Monthly: Looks to be forming a bearish Ending Wedge pattern. A break of trend line support at 12145 and the measured move target is 8695. Rallies have stalled and found sellers close to 13200.

Weekly:  Looks to be forming a bearish Head and Shoulders pattern. A break of 11621 (neckline) is needed to confirm the pattern. The measured move would then be 9728. We posted a bearish Outside Week (often an indication that a top is in place) at the 78.6% pullback level of 13195 (from 13601-11706). This week has started with indecision (all trading inside last weeks bearish range)

Daily: The daily chart highlights the selloff stalling at the 161.8% extension level of 12126. This can be seen as a 4th wave correction (Elliott Wave). Spikes can be seen in both direction highlighted indecision. Bespoke resistance is seen at 12469. The 38.2% pullback from the last selloff is located at 12516. This is our prime area to get short.

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