German Dax Can See Deeper Correction; Support at 14000 - 13500

DAX is waking up, making higher highs and higher swing low which is a bullish trend since March low, so we can expect more upside after any retracement since this is wave A, still only the first leg of a higher degree A-B-C recovery. We can actually see a completed five-wave cycle within first leg A in the 4-hour chart so looks like correction in wave B has just started. That said, an upcoming A-B-C setback can retest 14000 - 13500 support area.

Also, keep in mind that if ECB turns out to be more hawkish and if we will not get any positive news out from the Ukraine-Russia situation then DAX can be easily come down into wave C.

Grega

Kommentera:

DAX coming down as expected, now at frist key support..