DAX - Close to short-term exhaustion?

DAX - Minor top near 13,029 expected

DAX - Minor top near 13,029 expected

DAX - Close to short-term exhaustion? 

The German DAX posted a new all-time high yesterday at 12,976. This is in line with the expectation of a final rally closer to the resistance cluster-area between 13,424 - 13,435. 

Short-term, the rally from 12,044 looks stretch and is expected to run into a temperary to near 13,029 in wave iii for a correction in wave iv towards 12,797 and the a final impulsive rally into the 13,424 - 13,435 area to complete the impulsive rally, not only, from the February 2016 low at 8,695, but also from the March 2009 low at 3,589. 

Once this impulsive rally is complete a larger corrective decline should be expected, but for now, we need to stay focused towards the upside and the important 13,424 - 13,435 area. 

I would like to add one word of caution. We are in the final stages of the rally from for March 2009 and once the top is in place a larger correction towards at least 8,700 should be expected. This means that from the current level of 12,955 a potential profit of close to 4% is avalable, but the potential downside risk is close to 33% or almost a 10 to 1 risk/reward. 

 

Duane
2014-05-26
Great job this week!! Wish that I had more capital to capitalize on all of your great calls! The ones that I have managed to catch have been extremely profitable. I really appreciate you sharing you v...
Ananyavrat
2016-06-24
Hi Surfer,

Super calls !! And analysis.

Bravo for your brexit call !!
Whats next?

Ull need to update all indices!

Ananyavrat
Hani
2014-06-06
I have been a fan of you blog for several years!
I am so impressed at your renewal.
Elliott wave analysis is so difficult to me, but so interesting and useful.

Thank you
Hani