#elliottwave Flat Signals Further Advance To 10996 | #DAX $EUR
Friends,
My original analysis from 22 JAN (see "Related Ideas" link below) called for a top-reversal at 10,037 and a decline to the 7568 level - Since it hit that level dead-on, price rolled, but recovered a larger part of that decline - Question is: Will we ever return to any bearish level again, now that central banks are publicly in the business of purchasing stocks.
On a pure technical term, the discreet Positive Divergence in RSI should give bulls pause to think a moment, as this discreet and rare event - in which RSI carves a lower low against a higher0high in price - is associated with an imminent rallying in price.
WORST CASE SCENARIO:
The same predictive/forecasting model that defined TG-Hi also defined the lower targets expected to be hit after a rally reversed.
However, a "Worst Case Scenario" run indicates that a contrarian target up above is exposing bears to additional risk . Indeed, there are in fact to possibilities, each widely ranged from one another at 10393 and 10996.
DID A ELLIOTT WAVE BULLISH FLAT FORM?
This brings use to the question: Did an Ellliott Wave Bullish Flat form to signal further advance to 10393, ... 10996?
If indeed price were to rally above the recent high, this would indicate that the decline from 10037, which failed to carver out a new low could possibly be a Bullish Flat.
A FLAT CALLS FOR HIGHER HIGHS:
Here is one way to verify: The Flat call for internal waves, such that Wave-A and Wave-B are Zig-Zags (i.e.: 3-wave structures), and the last Wave C is a 5-wave construct.
Looking at the current pattern, the first counter-trend Wave A does exhibit 3 waves. And so is Wave-B. Most importantly, Wave C maintained an elongation suggestive of a 5-wave construct. Overall, we are seeing a completed Bullish Flat, if I did not know any better
OVERALL:
I believe that we are witnessing a rally inspired by the completion of a Bullish Flat. If one is to remain uncertain of this possibility, it would still be worth keeping in sight whether price were ever to rally above the prior high.
Interestingly, a similar worst-case scenario was just completed on the e-Mini S&P500, based on the potential formation of an Elliott Wave Extended Flat.
Cheers,
David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA
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Twitter: 4xForecaster
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My original analysis from 22 JAN (see "Related Ideas" link below) called for a top-reversal at 10,037 and a decline to the 7568 level - Since it hit that level dead-on, price rolled, but recovered a larger part of that decline - Question is: Will we ever return to any bearish level again, now that central banks are publicly in the business of purchasing stocks.
On a pure technical term, the discreet Positive Divergence in RSI should give bulls pause to think a moment, as this discreet and rare event - in which RSI carves a lower low against a higher0high in price - is associated with an imminent rallying in price.
WORST CASE SCENARIO:
The same predictive/forecasting model that defined TG-Hi also defined the lower targets expected to be hit after a rally reversed.
However, a "Worst Case Scenario" run indicates that a contrarian target up above is exposing bears to additional risk . Indeed, there are in fact to possibilities, each widely ranged from one another at 10393 and 10996.
DID A ELLIOTT WAVE BULLISH FLAT FORM?
This brings use to the question: Did an Ellliott Wave Bullish Flat form to signal further advance to 10393, ... 10996?
If indeed price were to rally above the recent high, this would indicate that the decline from 10037, which failed to carver out a new low could possibly be a Bullish Flat.
A FLAT CALLS FOR HIGHER HIGHS:
Here is one way to verify: The Flat call for internal waves, such that Wave-A and Wave-B are Zig-Zags (i.e.: 3-wave structures), and the last Wave C is a 5-wave construct.
Looking at the current pattern, the first counter-trend Wave A does exhibit 3 waves. And so is Wave-B. Most importantly, Wave C maintained an elongation suggestive of a 5-wave construct. Overall, we are seeing a completed Bullish Flat, if I did not know any better
OVERALL:
I believe that we are witnessing a rally inspired by the completion of a Bullish Flat. If one is to remain uncertain of this possibility, it would still be worth keeping in sight whether price were ever to rally above the prior high.
Interestingly, a similar worst-case scenario was just completed on the e-Mini S&P500, based on the potential formation of an Elliott Wave Extended Flat.
Cheers,
David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA
------------------
Twitter: 4xForecaster
------------------
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