In this technical blog, we will look at the past performance of 1 hour Elliott Wave Charts of DAX index. In which, the rally from 28 January 2021 low unfolded as an impulse structure. And showed a higher high sequence with a bullish sequence stamp favored more upside extension to take place. Therefore, we advised members not to sell the index & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:
DAX 1 Hour Elliott Wave chart
Below is the 1hr Elliott wave chart of DAX from the 5/05/2021 Asia update. In which, the rally to 15501.84 high ended the higher degree wave 3. Down from there, the index corrected lower within wave 4 pullback. The internals of that pullback unfolded as Elliott wave zigzag structure where the first leg of the pullback ended in wave ((a)) at 15071.78 low. While a 3 wave bounce ended wave ((b)) at 15355.28 high.
Then the index started the next leg lower of the pullback in wave ((c)). And managed to reach the blue box area at 14926.25- 14661.90 100%-161.8% Fibonacci extension area of ((a))-((b)). From there, buyers were expected to appear looking for further upside ideally or for a 3 wave bounce at least.
DAX 1 Hour Elliott Wave chart
Here’s the 1hr Elliott wave chart of DAX from the 5/07/2021 Midday update. The index is showing a strong reaction higher taking place from the blue box area after ending the zigzag correction at 14836.70 low. Allowed members to create a risk-free position shortly after taking the long positions at the blue box area. However, a break above 15501.84 high still needs to be seen to confirm the next leg higher & avoid double correction lower.
