The DAX30 break above the resistance (red) trend line confirms (green check) the continuation higher within a wave 5 (green) of wave 3 (blue). The main targets are the Fibonacci levels of wave 5 vs 1+3. A bearish breakout below the support trend line (blue) indicates a potential bearish push lower to test the Fibonacci retracement levels of wave 4 vs 3, which are potential bouncing (green check) spots. The wave 4 (green) remains valid (red x) as long as the price stays above the 50% Fib.
The DAX 30 is building a bullish channel at the moment. Price will need to stay in the channel if the bullish continuation (green check) is to take place now. A break below the 61.8% Fibonacci level of wave 4 vs 3 invalidates (red x) the wave 4 (light green) pattern.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.
This article was originally posted on FX Empire
More From FXEMPIRE:
- E-mini S&P 500 Index (ES) Futures Technical Analysis – Close Below 3132.75 Forms Potentially Bearish Closing Price Reversal Top
- AUD/USD Forex Technical Analysis – Trader Reaction to .6770 to .6769 Will Set the Tone
- Oil Price Fundamental Daily Forecast – Underpinned by Trade Deal Optimism, API Supply Worries Capping Gains
- DAX 30 Decision Zone at Fib Levels of Wave 4
- Crude Oil Grinds Higher with Focus on OPEC and Trade Talks
- AUD/USD Bearish Move Below the W L3 Camarilla