Chart of the day

Where do we stand fundamentally?

DAX could continue higher as the first major bank to cut rates was the ECB and the German economy proves resilient but should need support to avoid a soft landing. As inflation is softer ECB could continue cutting rates.

DAX is going for a test of the strong 19000. A break above this resistance could lead to an extension higher in the fifth wave to 21000. The support for this move higher is 18000.

An invalidation level of a third wave extension higher is 16200. We need to see a confirmed break higher above 19000 for a fifth wave extension to be confirmed and a target of 21000 to be reached.

_{Look for a long trade entry with a stop loss below 18300 to target 20500 at least.}