DAX Elliott Wave Analysis: Bounce Can Be Temporary

Hello Traders,

In this short-term analysis, we will have a look at the German DAX Index.

DAX short-term Elliott wave analysis suggests that the rally to 12882.05 high ended red wave X bounce. The internals of that bounce unfolded as Elliott wave double three structure where black wave ((w)) ended at 12640.87. Black wave ((x)) ended at 12468.68 and black wave ((y)) of red X ended at 12882.05 high.

Down from there, DAX is currently suggesting that it is unfolding as a potential 5 waves structure. Where blue wave (i) ended at 02/08/18 low (12491.53), blue wave (ii) pullback at 07/08/18 peak (12740.66), and blue wave (iii) at 08/13/18 low (12321.45). Currently, it is in the progress of making a pullback in blue wave (iv) before extending 1 more leg lower in blue wave (v) before a 3 waves bounce higher can be seen. We don’t like selling it.