DAX has surprised many traders as the indice rallied almost 1000 points from 11600 through 12600. High probability remains for a sharp reversal from here, until 12920 holds. The short term wave counts are as follows: The drop from 12920 through 11600 was in 5 waves, hence labelled as lower degree Wave 1 on the chart. The subsequent rally is corrective and has managed to reach the fibonacci 0.786 retracement of the earlier drop, Wave 2 on the chart. If the above holds true, we should witness a sharp drop towards 9500 levels as Wave 3 unfolds. The larger degree counts suggest DAX has carved Waves (1) and (2) around 8255 and 12920 respectively. If the counts are correct, prices should stay below 12920 (ideally 13800) and reverse sharply lower towards 8000, going forward.
Strategy:
Short against 13800, targeting below 8000
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against 13800, targeting below 8000
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.