Dax eyes new all-time highs as gap fill sets up next rally

Gregor Horvat Wavetraders

DAX is in recovery mode for a few months now, and it looks like this recovery will sooner or later reach new all-time highs. The only question is whether we will first get a higher degree A-B-C pullback back towards the 23170 to 24000 area, or if we will see a straight push to the upside. Currently, we are tracking a subwave B pullback, and after the GAP is filled, we can expect more upside within subwave C soon. Even if we get only a temporary rebound from there, taking the index closer to the all-time highs, it could still be wave (B) of some kind of an irregular formation, unless it extends the rally decisively into new all-time highs.

As mentioned before, for a higher degree correction on any kind of bigger pullback, keep an eye on the unfilled gap from the beginning of April.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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