German DAX: Downtrend Still In Play

By: Gregor Horvat | Wed, Feb 3, 2016
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DAX is trading higher this week but so far rally is not impressive; we see some slow moves here so it can easily be a corrective movement. An updated count shows a possibility for wave 4 that can be looking fro a resistance near 10000 psychological level. A new fall from there can be seen then, down into the wave 5, final leg of an ending diagonal. We would turn bullish only if price would rally above to 10400/10500.

German DAX, 4H

German DAX 4-Hour Chart

The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns.

An Ending Diagonal Pattern:

Elliott Wave Idealzed Ending Diagonal Pettern

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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