DAX Still Trading In A Correction; Final Leg C May Be In Sight

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German DAX fell sharply down this summer so we see price in big wave IV) pullback which could reach much lower levels by the end of the year, but after wave (B) rally is complete which seems to be underway now to higher levels. Ideally price will hit 10800 before downtrend will continue into wave (C).


 

On the 4h chart, German DAX is trading higher and it seems we will see even more gains in sessions ahead as recent pullback to 9900 was wave 4 as part of ongoing five wave recovery. We see this move as wave C) as shown on the updated count which is part of a big flat correction, so index can even reach area of a former wave A) near 10550-10600 before weakness can again show up.

A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Basic Flat Pattern :

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Gregor Horvat first made his name in Slovenia and has become world famous in the forex market since 2003. He is both a trader and a technical analyst who offers trading strategies on the Fibonacci and Elliot Wave principle. His main focus is on currency pairs, U.S. stock market, gold and oil. Gregor Horvat found the forex service offered on http://www.ew-forecast.com/. This website provides traders technical analysis, while putting emphasis on behavioral patterns. These are derived from the Elliott Wave Principle (EWP). Traders who are interested in the entry and exit positions, and he probability of the former and latter follow the EWP on a regular basis.