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.