Stocks

DAX Is Coming Higher After A ConsolidationMay 18, 2023

DAX is coming higher after a consolidation, which can be final leg before a slow down by Elliott wave theory.

DAX has been trading higher since October 2022, but five waves up from that low suggest that bulls can slow down into a higher degree correction, ideally down from 16200 – 16500 area where subwave five seen on 4h chart can come to an end, about we talked in past updates.

On May 16th, we have spotted a completion of a complex W-X-Y corrective consolidation within wave (4) in the 4-hour chart.

DAX Is Coming Higher After A Consolidation 4h chart from may 16
DAX 4H Chart From May 16

Even in the hourly chart we were nicely tracking an A-B-C-D-E triangle within that final wave Y.

DAX 1H Chart From May 16
DAX 1H Chart From May 17

So far we can see a sharp move out of a fourth wave consolidation, out of a triangle as well, so we assume that this can be final leg before turn.

DAX Is Coming Higher After A Consolidation 4h chart from may 18
DAX 4H Chart From May 18

On the intraday basis we can see a very sharp and impulsive move with price possibly targeting the 16200; triangle measurement move. But keep in mind that triangles occur prior to the final leg within a higher degree trend, so this can be now late stages of a recovery on DAX. If we are correct then DAX can face limited upside next week.

DAX Is Coming Higher After A Consolidation 1h chart from may 18
DAX 1H Chart From May 18

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