Hello traders, and welcome to a new daily update regarding the German DAX.
On the Weekly time frame of DAX we see price trading in a nice and clear impulsive and bullish sequence up from 2009. We can see a nice five-wave movement up from the lows, with final wave (V) of a higher degree in play which can in weeks and months ahead take price towards the 14000-15000 region.
Now switching to the Daily time frame, where we see price trading in a contracting and sideways correction, which can be labelled as a higher degree sub-wave IV. This correction is known as a triangle, which is a continuation pattern and moves into the direction of the trend( in our case to the upside). Triangles also unfold prior to the final move within a cycle, meaning once this triangle fully unravels a new rally above 13600 as sub-wave V of (V) may follow. That said, a the moment we see leg D of a triangle in play, that can look for resistance near the upper triangle line.
Thank you, and take care.
Cheers!
On the Weekly time frame of DAX we see price trading in a nice and clear impulsive and bullish sequence up from 2009. We can see a nice five-wave movement up from the lows, with final wave (V) of a higher degree in play which can in weeks and months ahead take price towards the 14000-15000 region.
Now switching to the Daily time frame, where we see price trading in a contracting and sideways correction, which can be labelled as a higher degree sub-wave IV. This correction is known as a triangle, which is a continuation pattern and moves into the direction of the trend( in our case to the upside). Triangles also unfold prior to the final move within a cycle, meaning once this triangle fully unravels a new rally above 13600 as sub-wave V of (V) may follow. That said, a the moment we see leg D of a triangle in play, that can look for resistance near the upper triangle line.
Thank you, and take care.
Cheers!