According to our analysis published on 16th August, we anticipated bearish opportunity in GER30(DAX) market based on our elliot wave count - the indice 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. We expected a dovish stance being adapted by GER30(DAX) and fall towards our targeted destination at 15645 and 15370 which the market did and took a bullish reversal from exponential moving average 50 in daily and exponential moving average 200 in four hourly time frame. The current market structure seems to be favoring bears unless GER30(DAX) provides us with a closing above 15858 i.e above exponential moving average 50 in four hourly time frame. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The fundamentals which provided GER30(DAX) with a bullish reversal was that  German Finance Ministry said in a monthly report on Friday, per Reuters, that the economy is on track for a lasting, probably stronger recovery in the third quarter driven by lively domestic demand after gross domestic product expanded by 1.5% on the quarter from April to June. When we come down to technicals, the relative strength index in weekly is trading near 70 with divergence being formed  - indicating that the bears will be incharge of the market for a while. GER30(DAX) has entered the ichimoku cloud in four hourly chart which shows that there still might be some bullish momentum that can pull the indice towards 15910 before moving any lower but the 15858 price action is a major resistance level at the moment which if broken can become a resistance turned support and create hawkish strength to GER30(DAX) - pushing it towards its highest highs i.e 16030. 

GER30

Aug 21 2021