Elliott Wave Analysis: Dax And Crude Oil

Grega Horvat

Dax recently traded into our region of resistance, near the Fibonacci ratio of 50.0 and 61.8, which usually presents a turning point zone. This means more weakness could follow on the pair in the near-term. A breach below the previous swing low of wave B would be and indication for more bearish pressure.

DAX Hourly Chart

DAX Hourly Chart

Crude oil is currently trading higher, undergoing a sharp rally away from our corrective wave 4. Recently broken upper channel line indicates a completed fourth wave correction and wave 5 of five in progress which can reach the Fibonacci projection zone of 261.8. Be aware, that we are following a wave five, which means upside can be limited in the near-term and a higher degree corrective reversal may follow to the downside.

Crude Oil Hourly Chart

Crude Oil Hourly Chart

Source: www.ew-forecast.com

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