Technical Analysis

German DAX May Have Found A Top, More Weakness Is Expected To Follow

Typography

On the hourly chart of DAX, we are looking at a possible reversal from the highs being made, with price now trading lower around the 12044 level. Well, we expect a sharp fall to follow from current levels, as we have been following an ending diagonal of a higher degree within the red wave 5). We know that ending diagonals are powerful reversal patterns, that tend to make sharp reversal, when they are completed. So we see a potential top at the 12178 level, and a breach beneath the 11946 level would indicate more weakness to follow.

German DAX, 1H

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Elliott Wave Financial Service
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