Bottom line:  DAX bearish structure remains intact until prices stay below 13600 levels, probably carving a standard flat structure.

Technical Analysis:

DAX had reversed from the channel resistance around 13425 levels early last week, keeping the bearish potential intact. The subsequent rally could be seen as a retracement of the drop between 13425 through 13140 levels, and that a potential lower top could be in place at 13330 levels. If the immediate short term structure holds well, DAX will ideally remain below 13425 and proceed lower towards 12800 levels during the next few trading sessions. Looking at the long to medium term wave count and structure, DAX has managed to print an A-B-C (5-3-5) lower between 13596 and 10279 levels. Subsequently the rally between 10279 through 13425 also unfolded as an A-B-C, reversing from the channel resistance last week. The existing 3-3 wave structure could be followed by yet another 3 waves at least, bringing prices back to 10270 levels. It could also be a 5 wave structure, completing a standard flat around 10200 levels. In either case, a high probability trade direction from here is expected on the south side, against 13600, with potential targets seen around 10200 respectively. Alternately, even if DAX breaks above the 13600 resistance, the rally could be short lived and a potential bull trap that should be avoided. In the latter case, we would like to remain flat and wait for a bearish reversal to initiate short positions again. At the moment, the structure looks to be bearish and a break below 12875 levels remain highly probable. This could be the beginning of a medium term bearish reversal with bears in control the coming weeks and months. Watch out for a bearish reversal signal around current price (13300), and prices pushing lower towards 10200 levels subsequently.

Prepared by

Harsh Japee, Technical Analyst

DAX Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。