Elliott Wave View: DAX Finds Support after Pullback

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.