Dear traders, if you follow my analyses and my social media channels regularly you know that I was talking about two scenarios regarding the DAX30 since the (blue) four was seemed to be completed:
1) We stick to the plan and finish the job without any detour. At this stage I was talking about 12,300 as a milestone - which I finally got. I closed all my long positions, waiting for something to happen as it still wasn't enough to be a (blue) 5 but the market seemed to be wobbly on its feet. So I had a few options on the table and thought a stretched (blue) 3 may be one of them - obviously I was wrong but that brings me to my second scenario which is, at this stage, more likely;
2) We take a detour below 12,000 as I mentioned on Facebook a few days ago. Strictly speaking, it can actually take us anywhere between 11,500 and 11,200. Anyway, in this case the (blue) 4 was not complete but is now in the making! This scenario makes total sense and wouldn't even harm the overlying, bullish trend of the DAX30. It's the long overdue correction in a very overheated market.
Being Short In A Bullmarket The bottom line is that the market is, overall, still bullish even if we go to the maximum of this correction which would be in the region of 11,200.
However, I took my chances and opened a short position yesterday in my Alvanda Mercury Account - and only in this account as this trade is counter-trend and therefore even more risky.
My Conclusion This correction does the market more good than bad. My target (for the blue 5) still stands: 13,200.
channelboarder was rejected above 12k2, now looks like w4 in last leg developing (needs to clear 11600) channel supports at 11.300, 10.750, W1 top at 10127
Dluginacci
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11,300 would fit in my image. Let's wait and see. Thanks for sharing, looks good. Cheers!
look4edge
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once more in a detail, btw, your ew count looks interesting, and - your long calls were GREAT, keep posting -:)
Dluginacci
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Thanks. I do think the (orange) 3 is about to be completed. Your analysis looks very good. Cheers!
channelboarder was rejected above 12k2, now looks like w4 in last leg developing (needs to clear 11600) channel supports at 11.300, 10.750, W1 top at 10127