? DAX30 Uptrend Running Out of Steam with H&S Pattern ?

2 min read

Hi traders,

The German DAX30 index is struggling to continue with the uptrend after its break below the support trend line. The failure to break above resistance could indicate a larger bearish correction.

DAX30

Monthly


DAX is either building a bullish wave C or wave 3 but both wave patterns could be completed. Another 2 weekly candles would probably confirm that the previous swing is over, although this is already becoming the most likely scenario at this moment.

Weekly


If price finished a wave 3 (purple from monthly chart), then the DAX is expected to build a wave 4 correction and one more bullish leg (wave 5). If price completed a wave C, then a larger bearish ABC could be taking place. Also, a larger reversal head and shoulders chart pattern seems to be taking place (purple boxes).

Good trading,
Chris Svorcik
Elite CurrenSea

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