I've decided to put the context in a separte post and update a little bit wiht another chart.
The DAX index got above the neckline and ATH. The daily momentum might
create a bullish cross, which would indicate the continuation of the
rally, but it doesn't necessary mean that price action can't pause or
even retrace. So the big picture is still open and should look out for
the correction channel on the daily time frame (it can be drawn 2 ways
in my opinion) and a bull trap as wave B of flat/triangle. I think these
patterns may be ruled out if the market will go above 12500. Then this
wave B scenario has a very slight chance and the market will go for the
next target zone on the monthly chart (
DAX perspectives).
But bear in mind that a monthly candle can absorb a lot of movement in
either way and the market triggered a daily bullish slingshots.
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| DAX: h1-h4-d1 charts |
The price action is nearing to the correction channel on the 4 hours
chart and almost at the first ideal Fibonacci level. The momentum reached the bull zone but the candle is not closed yet. The bias remain bullish above
the 12120-12020 zone on this time frame and above.
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| DAX - 4 hours chart |
The weekly chart also deserves some attention. The rally never touched
the lower line of the bigger elliott channel and still moving in an acceleration channel.
This might indicate a wave 5 of (3) situation. The trend of the momentum
is untouched so far.
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| DAX weekly chart - elliott channels | | | | | |
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