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Elliott Wave Financial Price Forecasting

Elliott Wave pattern of the month (Xetra Dax 30)

by m.tamosauskas| June 29, 2015 | 3 Comments

Success! Elliott Wave Pattern for the XETRA DAX

Success! Elliott Wave Pattern for the XETRA DAX

This month, the German Xetra Dax is in the spotlight. From its mid-March high of 12219.05, it was engaged in an expanding flat sequence. Although this is one of the patterns we encounter very often, it nevertheless is always again fascinating to behold! Comprised of a 3-3-5 structure, the expanding flat is characterised by an expanding bias – this means that each following price swing exceeds the price extreme set by the preceding one.

01_Dax150605

In the case of the Dax index, the initial decline into the 11619.72 low was labelled (minute) wave a of the sequence. It was followed by wave b rallies that exceeded the point of departure of wave a and traded into ‘uncharted’ territory. Wave c however proved to be the most interesting wave – first, it declined in an impulse-like fashion (c-waves of flats have to unfold into impulsive structures) but then engaged into a more overlapping type of price activity. This was early spotted by our analysts who described wave c as unfolding into an ending expanding-diagonal.

150629_DAX

Originally, downside objectives were measured basis the substructure of the diagonal’s 5th wave – downside extension of the Dax however led us to apply a fib. 161.8% extension of wave a of the flat. This is typically the maximum we expect wave c to travel – and indeed, also in this case the Dax reversed close to this downside target (shown by the dotted line) and has since staged a reversal signature that has corroborated additional upside in the weeks ahead, regardless the Greek circus.

Comments

  • Praveen Vishnu Shamain

    Thank you.

    I have a question for you. If S&P-500 (US Index) breaks 2072, would you change your DAX count, because S&P-500 breaking 2072 is -ve.

  • Hello Mr. Praveen, we just send out an update alert, suggesting that a marginal lower low is possible for the S&P 500 and the DAX, but what we want to address is that downside potential is fairly limited. Hope this helps!

    • Praveen Vishnu Shamain

      Thank You.

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WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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