Elliott Wave view: New high in DAX supports further upside [Video]
|DAX has broken to new all-time high suggesting the next leg higher has likely started. Short Term Elliott Wave View on the Index suggests the rally to 14169.49 high ended wave (1). Pullback in wave (2) is proposed complete at 13664.06 with internal subdivision as a double three Elliott Wave structure. Down from wave (1) peak, wave W ended at 13830.12 and bounce in wave X ended at 14131.21. Final leg lower in wave Y ended at 13664.06 this completed wave (2).
Index has rallied higher and broken above wave (1) peak suggesting wave (3) higher has started. Up from wave (2) low, wave 1 ended at 14051 and wave 2 pullback ended at 13673.07. Index then resumed higher and ended wave ((i)) of 3 at 14197.49. Wave ((ii)) is now in progress to correct cycle from February 26 low before the rally resumes again. As far as pivot at 13664.06 low stays intact, expect dips to find support in 3, 7, or 11 swing for more upside. Potential target higher is 100% – 161.8% Fibonacci extension from January 28 low which comes at 14532 – 15066.
If wave (2) pivot at 13664.05 fails, then as an alternate path, Index can do an Expanded Flat within wave (2). In this scenario, the decline to 13664.05 ended wave A and the rally to 14197.49 ended wave B and then now Index is doing 5 waves down to end wave C of (2) Flat.
DAX 45 Minutes Elliott Wave Chart
DAX Elliott Wave Video
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