Chart of the day

DAX is testing the upside breakout resistance of 16120. A break above this level is required for an upside reversal higher to test 17700 as a possible extension in the fifth wave. A rejection here will leave the downside swing in the fourth wave to test 15000 again as a probability, but a lower one.

I see this still as a fifth-wave upside not finished and will be confirmed upon a break above 16120. We need to see a clear confirmed break below 15180 for the upside fifth wave to be invalidated which is at this point not likely as the support for a breakout higher is strong.

Long trades could be opened here upon a break above 16120. Short trades should be opened in the case of rejection here and a break below 15700. This is a key resistance level and a break of it or a rejection will determine a future direction.