Short term Elliott Wave view in DAX suggests cycle from February 19, 2020 high is unfolding as a zigzag Elliott Wave structure. Down from February 19, 2020 high, wave ((A)) ended at 11624.63 low and bounce in wave ((B)) ended at 2273 high. The Index has resumed lower in wave ((C)). The internal of wave ((C)) is unfolding as a 5 waves impulse Elliott Wave structure. Wave (1) ended at 10558.2 low and the bounce in wave (2) ended at 11050.56 high. The index has extended lower and currently in wave (3).
Down from wave (2) at 11050.56, wave 1 ended at 10423.90 and wave 2 bounce ended at 10761.43. Index then resumed lower and wave 3 is expected to end soon. Index should do a short bounce in wave 4 then turns lower again in wave 5 before wave (3) ends. Afterwards, it should bounce in wave (4) before 1 final move lower in wave (5) which should end wave ((C)) from February 19, 2020 high as well.
The Index has reached the possible inflection area of a 3 waves ((A)) – (( B)) – (( C)) from February 19 high. That area is 8683 – 10054. Short sellers therefore should be careful as the Index may start to consolidate, slow down the selloff and perhaps bounce in 3 waves. If the selloff continues to reach 8683 (161.8% Fibonacci extension), then the decline risks to become an impulse and has follow up downside
DAX 1 Hour Elliott Wave Chart
