I usually use the hourly chart to analyze the short term evolution. Nevertheless the monthly chart gives a powerful view of the long term. In this chart, I describe my interpretation of the wave count situation of the DAX
. We are riding a third wave with strong impulse that broke a corrective triangular formation. This wave may not be over yet (most likely it will continue until the 13000 mark). The May candle is the first one with a lower high and lower low of the last 7 monthly candles. This is important because it emphasizes the criticality of this candle low as a support: the support level
at 11150 must hold to keep believing in a new impulse towards the 13000. In fact, if we loose the 11150, expect more sells in the coming weeks.