Two weeks ago I have posted my last analysis about the DAX30, expecting the (red) 2 to be completed. If you remember, I was expecting two possible scenarios, whereof the second scenario became reality. However, the (blue) 4 seems to be complete at this stage and the next and final stage, the (blue) 5 is in full swing.
Right, for all of you who are not really familiar with the Elliot Wave Theory a quick crash course:
A (trend) move contains 5 waves, from which 3 (1,3 and 5) are so called impulse waves. The waves 2 and 4 are always corrections and point against the overlaying trend. Now, every impulse wave, i.e. wave 5 is build up in five smaller waves, whereof these are again build up by even smaller waves and so on.
A Good Example Is The Current move
As you can see the (blue) 4, which was a correction, is finished and is building up a (blue) 5 - which again contains five waves - in this case red - and the red contains the orange and the orange the grey - and this is where I stop because I don't want to atomise it.
Anyway, I think you get the idea when you look at the chart.
Bottom Line
My target from two weeks ago still stands: 12.300 and from there we go. There's a good chance that the price is going to excess that target level but if so, be careful! A big a-b-c correction will be due as soon as the (blue) five is complete.
I have opened a DAX30 long position on all my public accounts after the (orange) 2 was finished, aiming for the 12.300. Looks good so far.
Right, for all of you who are not really familiar with the Elliot Wave Theory a quick crash course:
A (trend) move contains 5 waves, from which 3 (1,3 and 5) are so called impulse waves. The waves 2 and 4 are always corrections and point against the overlaying trend. Now, every impulse wave, i.e. wave 5 is build up in five smaller waves, whereof these are again build up by even smaller waves and so on.
A Good Example Is The Current move
As you can see the (blue) 4, which was a correction, is finished and is building up a (blue) 5 - which again contains five waves - in this case red - and the red contains the orange and the orange the grey - and this is where I stop because I don't want to atomise it.
Anyway, I think you get the idea when you look at the chart.
Bottom Line
My target from two weeks ago still stands: 12.300 and from there we go. There's a good chance that the price is going to excess that target level but if so, be careful! A big a-b-c correction will be due as soon as the (blue) five is complete.
I have opened a DAX30 long position on all my public accounts after the (orange) 2 was finished, aiming for the 12.300. Looks good so far.
