Image Source: Unsplash
 

DAX came lower into a deep pullback from the July highs, but notice that the decline was overlapping, so it’s not a surprise we are finally seeing nice stabilization, as we’ve been warning in past updates. What’s most important now is the sharp recovery out of the base channel, which usually confirms we are in a third wave of an impulse — normally the strongest wave.

DAX 4H Chart
 

So be prepared for more upside within this impulsive move, which could be the first leg, subwave A of an ongoing wave five that might belong to an ending diagonal as shown on the daily chart. Sooner or later, new all-time highs should be seen on the German index, which can push the price into 25k area.
 

DAX Daily Chart
 

For a detailed view and more analysis like this, you can watch our latest recording of a live webinar streamed on October 06: DIRECT LINK 

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