Sat, May 08, 2021 @ 22:54 GMT
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DAX 30 Struggling to Confirm Bullish ABC Zigzag

The German stock index DAX 30 has broken above the previous high but the angle of the price action remains shallow. Price will need a bullish breakout above the resistance trend line (red) to confirm a potential wave 3 (green). Ps. do not forget to check out our upcoming 3x Forex seminars on trading in Europe!

The DAX 30 could also find potential support at the confluence of trend lines (green/blue) for a bullish bounce. A bullish continuation could aim for the Fibonacci targets of wave C vs A at around 12,000-12,500. A break below this zone could however indicate a failed bullish breakout and a deeper bearish retracement (orange arrow).

The DAX 30 seems to be building a bullish ABC (blue) zigzag correction but a downtrend could occur if price manages to break below the key support trend line (blue). A bullish break above the resistance trend line (orange) could confirm the wave C (blue) pattern towards the 61.8% Fibonacci retracement level of wave X vs W.

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