E H&S Formation On DAX And A Five-Wave Drop Can Suggest More Weakness

DAX is turning south after a completed correction within a wedge pattern into wave C of 4), which means that DAX can be headed back to the lows for a wave 5). Especially, because we can see five sub-waves from the highs and current consolidation can be part of a three-wave corrective rise, which would be a nice bearish setup.

So, if we are correct then DAX may face a sell-off soon and one of the reasons can also be an H&S pattern, where both shoulders could last for 20 hours. That said, once this blue neckline is broken, then DAX may drop hard.

German DAX, 30Min

German DAX, H&S formation, 1h

 

 

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.