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DAX 30 Under Bearish Pressure After Double Top Pattern

Chris Svorcik

Dear traders,

the German DAX 30 index made a double top pattern and is extending a bearish retracement within potential wave 4 (green).

Daily chart

The DAX 30 is expected to make a pullback towards the Fibonacci retracement levels of wave 4 vs 3. A bullish bounce at the support Fibs could confirm (green check) the uptrend continuation (green arrows) towards the Fibonacci targets. A bearish break below the 50% Fib makes the wave 4 (blue) pattern less likely.

4 hour chart

The DAX 30 seems to be building a bearish ABC (green) within wave 4 (blue). A break below the 23.6% Fibonacci level could indicate a move towards the 38.2% Fib whereas a bullish bounce could mean the end of the wave 5 (orange) of wave C (green) and the start of a new bullish swing (green arrows). For the moment, a bearish continuation of the pullback towards the 38.2% Fib seems most likely.

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Good trading,
Chris Svorcik
Elite CurrenSea

This article was originally posted on FX Empire

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