DAX-GER30 topped exactly at our expected 12950.00 Levels back in May, finalizing Primary 3 (blue), as per our previously posted Bearish Correction for “GER30-DAX – SELL Set-Ups – Stock Exchange Crash”.
In our opinion, the entire 1000 units move down would reflect the 1st leg of the entire Corrective Structure, which would mean that a Pull-Back could take place in order for the 3rd leg to continue further down.
DAX-GER30 bounced off the 12000.00 Levels which we mentioned in our Bullish view for the “GER30-DAX – SELL Set-Ups – Stock Exchange Crash” post.
However, in our view, the structure became clearer because the Correction would need to subdivide into Intermediate degrees in order to have a ‘’clean look’’.
Our Elliott Wave Cycles Analysis points us, chronologically, to the following Levels:
As the Down-Trend unfolded, by labelling our Wave Count we noticed that there is a valid possibility for DAX-GER30 to have another Bullish Swing towards 12550.00 Levels. The explanation is quite simple: just as Impulses subdivided previously into Cycle/Primary/Intermediate/Minor/Minutes/Minuettes so does the Corrective Structure.
The 20th June – 11th Aug Down-Trend, as per the current Wave Count, appears to complete the Intermediate (A) (purple) and there is a considerable chance that Price Action could unfold on the up-side with a Bullish Swing towards Intermediate (B) (purple).
Wave Analysis:
• Intermediate (A) (purple) unfolded as a 3-3-5 Sequence in Minors ABC (red) which would require a Retracement on the up-side for Intermediate (B) (purple). • 11th Aug low was followed by a 5 Swings Sequence in minor A (pink) which leads a Wave Trader to think that there could a continuation, with another 5 Swings on the up-side for Minor C (pink). • Corrective Minor B (pink) reversed from the 61.8% Fibonacci Retracements of Minor A (pink), which is also an Inverted Head & Shoulders Pattern.
• When in the green, moving SL to break-even or in profit. • If Conservative, waiting for Inverted H&H Support reaction and getting Bullish Divergence confirmation.
@Libeloo24 ... whats your thoughts on Dax please. I'm holding short & its starting to hurt. Where do you think we are at + the up & coming elections etc etc. Cheers
Lionheart-EWA
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@gaptraderhq, this is how I think we're standing with DAX:
Lionheart-EWA
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Lionheart-EWA
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you can see the related ideas for the updates
gaptraderhq
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@Libeloo24, cheers buddy... yeah I looked at that. Looks like I will have to wait for the October fall to close the lower Gap. I was hoping for an 11200 level before the year is out.
Lionheart-EWA
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@gaptraderhq, for now I see the 11650 possible but we wii have wait for a final push maybe or a bearish breach.