Elliott Waves on Dax: Drop looks overlaping, price may stabilze
DAX moved to the downside, breaking out of a consolidation, potentially down from another B wave, which might have been triangle around the 17,800 area. This movement could represent the final thrust out of this contracting range, indicating that there might still be potential for stabilization. We have already observed some intraday reactions to the upside, in the lat two hours, which could suggest that the market may stabilize in the sessions ahead. Given that the overall decline from the start of April is quite overlapping and challenging to classify as an impulse, we assume that recovery may occur. But possibly, next rebound could manifest as another three-wave rally. Importantly, we are not witnessing any signs of impulsive weakness at this stage, especially since the current minor rise also overlaps the 17,700 area. But it's true, trend is down untill is not, and this may change when one of the previous swing highs are broken.
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Author
Gregor Horvat
Wavetraders
Experience Grega is based in Slovenia and has been in the Forex market since 2003.
