DAX (DAX Index): Waves of uncertainty 🌊
Updated
DAX (DAX Index): 
DAX
We recognize that our analysis might diverge from other analysts', but our assessment clearly indicates that the DAX is currently in an overarching Wave 4, visible on the weekly chart within a multi-year scenario. This holds unless we surpass the 18,000 level. If we move beyond 18,000, a reevaluation and recount would be necessary. Until then, we anticipate a decline in the DAX over the coming weeks, months, and possibly years. The exact timing, whether it rises or falls, cannot be pinpointed to a specific year. However, it's important to note that as long as the DAX doesn't exceed 138%, or the 18,000 mark, we expect to be in an Expanded Flat scenario. This aligns well with our expectations for Wave C or the overarching Wave IV, which should fall below Wave (A), fitting the pattern where both B and C waves overshoot in an Expanded Flat.
Examining the 4-hour chart, we encounter the same scenario. Without flipping this key level, no significant change is expected. The 1-hour and 4-hour charts suggest an imminent rise, not immediately obvious on the daily or weekly charts, predicting a climb to around 17,500 euros before a downturn in the DAX. We do not anticipate an immediate reversal today or tomorrow but expect a final upward impulse before a corrective move downwards.
DAX We recognize that our analysis might diverge from other analysts', but our assessment clearly indicates that the DAX is currently in an overarching Wave 4, visible on the weekly chart within a multi-year scenario. This holds unless we surpass the 18,000 level. If we move beyond 18,000, a reevaluation and recount would be necessary. Until then, we anticipate a decline in the DAX over the coming weeks, months, and possibly years. The exact timing, whether it rises or falls, cannot be pinpointed to a specific year. However, it's important to note that as long as the DAX doesn't exceed 138%, or the 18,000 mark, we expect to be in an Expanded Flat scenario. This aligns well with our expectations for Wave C or the overarching Wave IV, which should fall below Wave (A), fitting the pattern where both B and C waves overshoot in an Expanded Flat.
Examining the 4-hour chart, we encounter the same scenario. Without flipping this key level, no significant change is expected. The 1-hour and 4-hour charts suggest an imminent rise, not immediately obvious on the daily or weekly charts, predicting a climb to around 17,500 euros before a downturn in the DAX. We do not anticipate an immediate reversal today or tomorrow but expect a final upward impulse before a corrective move downwards.
Trade active
Our limit for the short position got filled ✅There's nothing more to say except that we'll have to wait and see how it turns out.Note
DAX #DAXSince our short entry, the DAX has risen further; we entered at 17,500 € and are currently at 17,700 €, though there has been a slight pullback today. Overarchingly, we still expect a downward movement as long as we do not surpass the 138% level or the 18,000 € mark, which would also be our stop-loss level. This would indicate that the overarching Wave IV is still in progress. For our take-profit, we've set the target at the Wave B level, though we believe the drop could be significantly deeper. However, this remains our minimum expectation. We continue to anticipate a significant correction in the DAX before any further upward movement.
Daily Chart Update:
4H-Chart Update:
Note
🔴 Trade Update Long-Term🔴We got stopped out on our DAX short. Now we are going to give it a closer look because it has invalidated our bearish scenario. We are going to be back soon with another analysis on the DAX.
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