DAX long-term 5th wave extension
DAX is extending higher in the long-term impulsive upside 5th wave and is ending expanding flat correction for an extension higher as you can see on a monthly chart by breaking above the 13700. Does this mean that the DAX is heading higher? Should you be building the buying position…If we look at the monthly chart we can see that DAX is going for a new high of around 15000 which will be also the long-term channel resistance. At the moment there are no signs of a reversal lower so as long as we are above 13700 target remains 15000.
At this point, we can see a violent price action around the 13500-13700 which was on a retest now as this is was the strong RESISTANCEÂ for an upside continuation and a break above the 3rd wave. At the moment a sustained break above this zone will be a clear indicator that the recent upside reversal is valid. We can see that clearly on the weekly chart below. The latest weekly price action is pointing to an upside test of 14700 and 15000.
On a daily chart, we can see an ending diagonal Already a member? This article is so good, it's for premium members only.
Does that sound like you?
Go Premium to read full trading strategy with parameters of entry, stop loss, and exit. Why Premium?
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.