According to our analysis pubished on 19th July, we aniticipated that GER30(DAX) will be providing a bullish reversal from our major weekly support area 15120 - where our daily lower trend line is also situated, towards our targeted destination 15811 and signals stop loss was 14739. The market followed our analysis in a very precise manner while giving this weeks friday closing at 15776, a few points below our targeted destination. The highly positive expectations from Non Farm Payrolls which was released this week, boosted the stocks along with GER30(DAX) towards there previous highs and some even setting record gains for the first time in history of NYSE and ICE. According to our elliot wave count, GER30(DAX) has completed its 5 wave bullish structure of higher degree and has been consolidating itself inbetween the range prices 15775-15075. This time we are expecting a dovish stance being adapted by GER30(DAX) and fall towards our targeted destination at 15705.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The current market structure seems to be favoring bears again, though GER30(DAX) is still hovering above the ichimoko cloud - size of the cloud seems to be crossing over with mixed sentiments, pointing at a tough struggle in this zone between hawks and doves. We were going to target exponential moving average 200 in daily as the targeted destination but there is high supply and demand at 15075 which might take some mettle for bears to break and fall to 14813. Our lower trend line and fibb retracement level 50% can be taken as the first check point by GER30(DAX), which if broken - will determine our next stops at 15075. From another aspect, if we draw another fibb level in daily from 15841-13626, the 50% fibb lyes at 14741 i.e near to our exponential moving average 200. This move will be marked as a bearish correction of higher degree and GER30(DAX) will be ready again to set new high records. 

GER30 (DAX)

Aug 07 2021