German DAX Towards New Highs: Elliott Wave Analysis

Published 09/03/2020, 05:04 AM
Updated 07/09/2023, 06:31 AM
DE40
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German DAX has been trading slow, sideways and choppy for the last three months, probably unfolding a running triangle correction in IV, that is part of a bigger, bullish impulse. 

A triangle correction is a continuation pattern, which unfolds prior to the final wave, in our case this means to the upside. It also has five legs, where all of them have three sub-waves. Leg e can in some occasions unfold as a triangle itself.

Looking at the 4h chart of DAX, we can see all needed legs within a triangle fully developed, and a new recovery from the 122841 level, which also breached the upper triangle line, confirming a completed pattern, and more upside. Ideally, a wave V of a higher degree is now underway, with a five-wave sub-structure.
German DAX, 4h

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