We published an article on 7th August in shape of a pending order, expecting that GER30 indice will have a tremendous fall after making highest high and breaking previous yearly recorded gains. Fortunately the signal didnt get activated because the market moved a couple of points above our stop loss and now we finally have the bearish opportunity again. According to our elliot wave count, GER30(DAX) has completed its 5 wave bullish structure of highest degree and took a shaper bearish reversal from 16300 towards its previous breakout of the settled high i.e 15883. This time we are expecting a dovish stance being adapted by GER30(DAX) and fall towards our targeted destination at 15645 and 15370. 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. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

We were going to target exponential moving average 50 in daily as the targeted destination but there is high supply and demand at 15642 which might take some mettle for bears to break and fall to 14893 i.e exponential moving average 200 in daily. Our lower trend line at 15846 will be taken as the first check point by GER30(DAX), which if broken - will determine our next stops at 15700. This move will be marked as a bearish correction of higher degree and GER30(DAX) will be ready again to set new high records. Our targeted destinations i.e 15645 and 15370 to be met by GER30, we need further breakouts below the ichimoku cloud and exponential moving average 200 in four hourly chart. Major support zone shown in our daily chart will be met because of highly formed divergence in daily and intraday time frames. 

GER30

Aug 16 2021