DAX: Intraday Pullback Is Moving Into Support

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DAX has seen some deep pullback in 2023, but it was  A-B-C drop into the important 14400-14600 area from where we can see nice and clean impulsive recovery from that support zone, and back to new highs, so bullish trend is here, and it's very strong one. It's a trend that can resume even higher because it should be completed by a five-wave cycle on a daily chart. After a completed wave III, DAX made a deep retracement in the 4-hour chart down to 17400 that we have been tracking through April. It was a perfect setback that now puts wave V back in play. It's a bullish leg that should be structured by five subwaves, so while the price is above 18236, we can expect more gains up to 19k-19200 area, but ideally after current wave 4 correction that can retest 18573 support area.

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On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.