Higher Dax argument:
- there is a risk that current price action is in wave 4 and there is a potential thrust of wave 5 to target 11200
- it fits in with 61.8% fib retracement for 11200 levels as it confluence with the downtrend line (magenta) and cross well with the rising black line which depict potential exhaustion point
- it remain bullish as long as it does not break below its current market structure or below 10650 levels
- RSI is high and bullish - this can remain elevated
Lower Dax argument:
- only a break of market structure or below 10650 can we call a short term top
- If we break below then we can argue that this wave of AB=CD is complete (invalidated EW 1-5)
- ideal return targets are the breakout area at 10100 which coincide with the 50% fib retracement
Subject to:
- EUR/USD strength
- BOJ to either do more easing or not
- SPX strength
- there is a risk that current price action is in wave 4 and there is a potential thrust of wave 5 to target 11200
- it fits in with 61.8% fib retracement for 11200 levels as it confluence with the downtrend line (magenta) and cross well with the rising black line which depict potential exhaustion point
- it remain bullish as long as it does not break below its current market structure or below 10650 levels
- RSI is high and bullish - this can remain elevated
Lower Dax argument:
- only a break of market structure or below 10650 can we call a short term top
- If we break below then we can argue that this wave of AB=CD is complete (invalidated EW 1-5)
- ideal return targets are the breakout area at 10100 which coincide with the 50% fib retracement
Subject to:
- EUR/USD strength
- BOJ to either do more easing or not
- SPX strength