DAX-GER30  – Bullish Retracement – Minor C

DAX-GER30 topped exactly at our expected 12950.00 Levels back in May, finalizing Primary 3 (blue), as per our previously posted Bearish Correction for “GER30-DAX – SELL Set-Ups – Stock Exchange Crash”.
In our opinion, the entire 1000 units move down would reflect the 1^st leg of the entire Corrective Structure, which would mean that a Pull-Back could take place in order for the 3^rd leg to continue further down.

DAX-GER30 bounced off the 12000.00 Levels which we mentioned in our Bullish view for the “DAX30 – Stock Exchange Crash – Full Cycle” post.
However, in our view, the structure became clearer because the Correction would need to subdivide into Intermediate degrees in order to have a ‘’clean look’’.

Our Elliott Wave Cycles Analysis points us, chronologically, to the following Levels:

1. 12550.00
2. 11600.00
3. 13300.00
4. Market Crash

Let’s see why!

Daily Chart (picture):

As the Down-Trend unfolded, by labeling our Wave Count we noticed that there is a valid possibility for DAX-GER30 to have another Bullish Swing towards 12550.00 Levels.
The explanation is quite simple: just as Impulses subdivided previously into Cycle/Primary/Intermediate/Minor/Minutes/Minuettes so does the Corrective Structure.

2H Chart (picture):

As per the current Wave Count, the 20^th June – 11^th Aug Down-Trend appears to complete the Intermediate (A) (purple) and there is a considerable chance that Price Action could unfold on the up-side with a Bullish Swing towards Intermediate (B) (purple).

Wave Analysis:

• Intermediate (A) (purple) unfolded as a 3-3-5 Sequence in Minors ABC (red) which would require a Retracement on the up-side for Intermediate (B) (purple).
• 11^th Aug low was followed by a 5 Swings Sequence in minor A (pink) which leads a Wave Trader to think that there could a continuation, with another 5 Swings on the up-side for Minor C (pink).
• Corrective Minor B (pink) reversed from the 61.8% Fibonacci Retracements of Minor A (pink), which is also an Inverted Head & Shoulders Pattern.

DAX-GER30 – 2H Interactive Chart:

DAX-GER30  – Minor C – BUY Position:

• Entry Level – 12070.00 (or 12030.00 if Conservative)
• SL – 11920.00
• Targets – 12320.00 & 12550.00

Safety Measures:

• When in the green, moving SL to break-even or in profit.
• If Conservative, waiting for Inverted H&H Support reaction and getting Bullish Divergence confirmation.

Many pips ahead!