The diagonal proved to be a fake-out, but after taking the presumed ED lows at the time, DAX managed to stage a strong rally, which looks clearly impulsive - 5 waves. Now that tells us that after an a-b-c- retrace, dax should go higher at least in another impulse wave.
The current wave looks to be in it's final 5th, and this could extend, but the text-book target for 5=1 is at 9815. If it starts nesting to the upside we will know that an extension is in the cards. If not... then a decline towards 2/B should ensue. Depending on the strenght of the bulls here, the retrace might be either shallow or deep, but I would watch the usual Fib suspects of 38,2%, 50% and 61,8%. I cannot give the precise targets, since I don't know where 5 of 1/A will end.
My short term expectation is drawn on the chart - pls be aware that the targets are only indicative and by no means intended as precise stopping points for the 1/A - 2/B - 3/C.
After we complete these 3 waves we should look to see if they will develop into something more towards the big or 4, or if it will be just an a-b-c before the larger downside movement resumes.
Good luck out there!
As always food for thought from mcm:
mcm-ct.com/blog/repr...kely-to-accellerate/
The shown tools are available also for dax. If you are interested or would like to know more, feel free to write me at alex@mcm-ct.com anytime.
The current wave looks to be in it's final 5th, and this could extend, but the text-book target for 5=1 is at 9815. If it starts nesting to the upside we will know that an extension is in the cards. If not... then a decline towards 2/B should ensue. Depending on the strenght of the bulls here, the retrace might be either shallow or deep, but I would watch the usual Fib suspects of 38,2%, 50% and 61,8%. I cannot give the precise targets, since I don't know where 5 of 1/A will end.
My short term expectation is drawn on the chart - pls be aware that the targets are only indicative and by no means intended as precise stopping points for the 1/A - 2/B - 3/C.
After we complete these 3 waves we should look to see if they will develop into something more towards the big or 4, or if it will be just an a-b-c before the larger downside movement resumes.
Good luck out there!
As always food for thought from mcm:
mcm-ct.com/blog/repr...kely-to-accellerate/
The shown tools are available also for dax. If you are interested or would like to know more, feel free to write me at alex@mcm-ct.com anytime.
