Elliott Wave View: DAX Structure Remains Bullish

Short Term Elliott Wave view in DAX shows a bullish sequence structure from December 28, 2018 low, favoring further upside. The Index has potential to reach 100% extension towards 11912 – 12157 before ending cycle from December 2018 low. The rally from December 28, 2018 low is unfolding as a double three Elliott Wave structure where wave ((W)) ended at 11321.62 and wave ((X)) ended at 10865.31.

Wave ((Y)) rally is unfolding as a zigzag Elliott Wave structure. The first leg wave (A) of this zigzag ended at 11676.86 as 5 waves impulse. Up from 10865.31, wave 1 ended at 11217.3, wave 2 ended at 11018.95, wave 3 ended at 11556.87, wave 4 ended at 11416.08, and wave 5 of (A) ended at 11676.86. Wave (B) pullback is now in progress to correct cycle from Feb 9, 2019 low (10865.31) before Index resumes the rally higher. We are looking for 7 swings lower to complete wave (B) in 11445 – 11341 area where buyers should appear to resume the rally for new highs or produce a 3 waves bounce at least.