DAX 30 Confirms Downtrend and Bearish ABC Zigzag
|German DAX 30 index is showing bearish pressure after breaking below the support trend line (dotted blue). The bearish breakout could indicate the end of a bullish price swing and also the end of a large wave A (purple).
DAX 30
Daily
The DAX 30 seems to have completed 5 bullish waves (blue) which could indicate that the index is now ready for a bearish ABC correction. The bearish correction could be part of a wave B (purple) after price seems to have completed a bullish wave A (purple). A key support trend line (blue) of the uptrend channel is still a key factor for the long-term direction of the DAX and whether the price will remain in an uptrend or make a larger bearish correction (as this wave outlook expects).
4 hour
The DAX 30 broke below the smaller support trend line (dotted blue) which is confirming a new downtrend with lower lows and lower highs. This seems to confirm the expected ABC (blue) correction from the daily chart. The next target is the 23.6% Fibonacci retracement level of wave B vs A but the price could fall lower if the bearish momentum is strong enough.
The analysis has been done with the CAMMACD.MTF template.
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