The main takeaway remains that the DAX is likely to climb to higher levels. The German equity index will most likely rise above today's levels. However, the path towards 13,000 points, which shows an unfilled opening gap, is ambiguous.
Two structures are most likely. The black scenario shows a triangle that resolves to the upside into a new high. We continue to assess this scenario as the most likely. A triangle resolution could follow the solid black path or the dotted black path. The difference between both is whether wave C unfolded already or not. This is ambiguous at this point. Both versions look best after an imminent pullback. The DAX should resolve the ambiguity within the next few trading days.
The best alternative interpretation is an Orthodox top in May 2018. Prices need to trace out a motive wave to the downside if that is the case indeed. This means that the current leg has to go lower. The DAX wave structure needs to morph into a motive wave somehow.
All in all, the black scenario has the higher probability. We expect a nearby resolution to the upside.
