Trading Plan for DAX for May 30, 2018

analytics5b0ed67c08686.jpg

Technical outlook:

We have presented a weekly chart for DAX to show a bigger picture, in line with what we discussed for the Dow Jones index earlier today. Believe it or not, a potential remains for a meaningful push lower for the indix keeping in line with other major world indices. Let's look at the structure and wave counts in details. The entire rally that began on Feb 08, 2016 from 8,700 levels and went all the way up to 13,500 levels has been labelled into 5 waves making it an impulse wave termination at a very large degree. In January 2018, the index peaked and reversed sharply breaking below its major trend line support and also breaking below immediate price level support at 11,868. That wave has been labelled as wave (1). The following rally unfolded in 3 waves making it corrective in nature, labelled as wave (2) here. If this wave count holds to be true, then we should see a major sell-off in the coming weeks and months.

Trading plan:

Remain short with stop above 13,040 levels, target is open.

Fundamental outlook:

There are no major events left for the day.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com