Chart of the day

DAX is testing the upside resistance of 17000 and if we get a break above this level we could see an extension higher to 17500 which is the long-term wedge resistance that can be the end of the five upside waves.

Only in the case of a clear confirmed break above 17500, will lead to an immediate upside extension in the fifth Elliott wave higher and this will be a sign that we are in the extended fifth wave and the whole global stock market is in the bullish phase. A break below 15600 is required to invalidate this.

_{Long trades could be opened here with a stop loss below 17200 only upon a confirmed break above 17500. Short trades are more advisable here as they have a possible better risk to reward and with a stop loss above 17300. This can be traded with options as well.}

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