DAX Trading In A Possible Correction
A sharp turn down from 11890 on DAX suggests that index accomplished a five wave movement within extended blue wave 3 and that current reversal represents a corrective structure in wave four. We are observing idea of a three wave A-B-C structure with current price moving up into sub-wave B which is now trading a little above the resistance zone. We see a small gap here from end of January that can cause a new turning point for wave C down. However, sentiment is very bullish, so it's important to wait on a drop back below 11640 before we can call end of a wave B. That said if price goes from current levels straight up, then higher degree wave 4-cricled could already be over at the 11457 level and more upside may be in view in wave 5-circled.
German DAX, 4H
Disclosure: None.