Chart of the day

Where do we stand fundamentally?

DAX is still in the bullish cycle prompted by possible monetary easing and rate cuts after the hiking. Also parameters of a German economy are getting better despites higher rates.

DAX is testing the consolidation triangle resistance 18600 for a breakout higher in the long-term upside fifth wave. Deeper pullback and an invalidation of immediate extension higher should happen upon a break below 18000.

An invalidation level of a fifth wave long-term extension higher is 16400. This extension higher could lead to 20000 target in the medium-term to long-term upon a break above 18600 again.

_{To join the trend and take advantage of the bullish cycle look for a long trade entry with a stop loss below 18200 to target 20000 at least upon a break above 18600. You can trade it with options as well.}