German DAX Trading Into A Correction

Grega Horvat

German dax is making a nice drop away from 12970 region, where potential wave 3 had ended. This means current drop can now represent  part of a three wave move within blue wave 4. Support for the unfolding correction can take place around the 11461/11916 level and near the Fibonacci ratio of 38.2.

DAX Daily Chart


On the 4h chart, we can see that German dax made a strong and sharp drop lower the past week, which we now see it as sub-wave iii of black wave A. That said wave A will now unfold a five wave movement within itself, before make another correction into the following wave B. Once wave B unfolds, a new drop lower into wave C can follow.

DAX 4 Hour Chart