9 - Volatility in 2018-2019 & The Financial Earthquake
GER30 concluded a drop of approx. 2100 points since June until October 2018, getting heavily hit by the sudden spike in volatility. Since the start of the year the German index is displaying a loss of approx. 18% in value.
The entire bearish sequence which began in late 2017 has been labeled as a Cycle Wave IV (green) degree, with its Primary sub-waves WXY (purple) unfolding within a complex sequence and with conflict of degrees.
Primary W (purple) represents the first sell-off which occurred back in February 2018, and primary X (purple) has been classified as the potential left shoulder in a Head & Shoulders scenario. Primary Y (purple) however, has been classified as more of a complex structure, with a Descending Channel in Intermediate (B) (orange).
Intermediate (C) (orange) would represent the last piece of the bearish puzzle and the possible end of the entire cycle degree correction. Its structure has been labeled as a bearish impulse with a five-swings sequence in its Minor sub-waves 12345 (red).
Assuming that one more volatility wave would occur, and that the technical analysis shared could be on track, then this would lead towards more possible weakness ahead for GER30. Intermediate (C) (orange) could retest the 61.8% Golden Ratio before the bull market would return.
The entire bearish sequence which began in late 2017 has been labeled as a Cycle Wave IV (green) degree, with its Primary sub-waves WXY (purple) unfolding within a complex sequence and with conflict of degrees.
Primary W (purple) represents the first sell-off which occurred back in February 2018, and primary X (purple) has been classified as the potential left shoulder in a Head & Shoulders scenario. Primary Y (purple) however, has been classified as more of a complex structure, with a Descending Channel in Intermediate (B) (orange).
Intermediate (C) (orange) would represent the last piece of the bearish puzzle and the possible end of the entire cycle degree correction. Its structure has been labeled as a bearish impulse with a five-swings sequence in its Minor sub-waves 12345 (red).
Assuming that one more volatility wave would occur, and that the technical analysis shared could be on track, then this would lead towards more possible weakness ahead for GER30. Intermediate (C) (orange) could retest the 61.8% Golden Ratio before the bull market would return.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.