DAX Technical Analysis for week 06/11/2017

[Peter23]

Dax weekly EW count suggests a major wave 3 in a cycle started Feb 2016 may have completed last week.

Note the similarity in both time and distance for sub waves i and v which is a classic EW pattern. To increase the probability of a turn, we need to investigate the lower time frames starting with the Daily chart down to the 1hr chart.

[Peter23]

Examining the Daily chart shows that there is scope for a run to 13600-670 where the 5th wave of the major wave 3 would represent a 61.8% extension of the cycle started 29th August - this again is a classic EW pattern where the wave 3 in the cycle is an extended wave and exceeded its ideal target. So again, further analysis of the lower time frames is required to increase the probability further. 

 

[Peter23]

Examining the 1hr chart suggests that a wave 3 in the cycle from 29th August is the most likely structure to have completed and a wave 4 in the cycle would now target former cycle resistance at 13250. Only a break with 1hr and Daily close would suggest a larger cycle has completed. If correct, then dips towards 13250 would then target 13600-670 to complete the major weekly cycle and call for a deeper retest of former resistance at 12950 area.