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DAX Buyers Step In After Zig Zag Correction
Confirmed
In Short: Buyers entered the market after a Zig Zag correction, signaling a potential recovery in the DAX Index.
Buyers entered the market after a Zig Zag correction, signaling a potential recovery in the DAX Index. According to technical analysts at Action Forex and FXStreet, the Zig Zag pattern completed, leading to a wave X red recovery against the 26616.21 peak.
Recently, the DAX Index completed a Zig Zag correction at the Equal Legs area, where buyers stepped in. Analysts noted a clear five-wave structure in the first leg of the pullback, wave ((a)), followed by a three-wave bounce in wave ((b)).
The DAX Index was then developing wave ((c)), expected to subdivide into five waves as well. This wave ((c)) development is crucial for identifying the continuation of the trend.
The Elliott Wave structure is close to completing a five-wave impulsive sequence. If the Index breaks above the prior peak at 7816.7, it would complete wave (v) and finalize the cycle from the June 9 low, signaling a larger degree three-wave correction following the current cycle.
What's confirmed
- We were looking for a break below the wave ((a)) low to confirm further downside extension in wave ((c)).
- The Zig Zag pattern completed, and DAX then started a wave X red recovery against the 26616.21 peak.
- In this technical article, we’ll take a look at the Elliott Wave charts for the DAX Index.
- Recently, the index completed a Zig Zag correction at the Equal Legs area, where buyers stepped in.
- In the sections below, we’ll examine the Elliott Wave structure in more detail, outline the current forecast, and explain the pattern behind the recent price action.
- Before looking at the real market example, let’s first take a quick look at the Elliott Wave Zig Zag pattern.
- Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory.
- Inner swings are A,B,C where A =5 waves, B=3 waves and C=5 waves.
What's still developing
- The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.
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