Tuesday, 15 June 2010

9:32 BST - Dax Update

Here's the daily picture on the Dax - a possible double zig zag from March 2009.

Since its high on 26 April 2010, the Dax has been stronger than many other indices. Its most bearish count is probably a [i],[ii],(i),(ii) down from the April high, with (ii) still in progress, but possibly nearing an end.

This is how it looks on the 60 min chart:

Wave (ii) has retraced 78.6% of wave (i) down. This count will be invalidated by a move above 6276.80. It may then be that the Dax is still in wave [ii], but the invalidation point for such a count is not far above, at 6341.52. If that gets taken out, then the likelihood is that the more bullish count of a complete (X) wave at the 25 May low has now launched the Dax into a minor A of another zig zag.

Here is the 15 min chart:

The black correction channel is still containing the move off the 25 May low.

Wave (ii) could be complete at yesterday's high (it would be a slight truncation in (5) of [C] on a very close up view), but its possible we are still in 4 of (5), so another new high could still be in the works.