In my last report (which I publish when DAX was trading around 12515) I discussed a Long Trading setup based on a Triangle pattern, after that DAX has gone on to make new lifetime highs and is currently trading around 12987.
As of now it looks like the German Stock Market Index is forming a Ending Diagonal Pattern which can lead to a corrective decline.
Possible Ending Diagonal in DAX (Elliott Wave Analysis)
As such this looks to be a Contracting Ending Diagonal and hence if length of Wave 5 is bigger then that of Wave 3 then that would lead to invalidation of the pattern.
Invalidation Level : 13043
If things progress as per this count then we can see a corrective decline minimum till the level of 12849 and if this is a higher degree correction (something that will become clear later on) then we can see a fall as low as 12650-12520
Target Minimum : 12849
Target Maximum : 12650-12520
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