Chart of the day

Where do we stand fundamentally?

The DAX index has recently seen notable movements influenced by macroeconomic factors, particularly related to expectations of European Central Bank (ECB) rate cuts. On October 17, the DAX reached an all-time high of 19,675, largely driven by investor bets on a 25-basis point ECB rate cut in December, which was supported by softening Eurozone inflation. Inflation fell to 1.7% in September, below the ECB’s 2% target, which has raised hopes for further monetary easing.

DAX is testing the 19690 level for an extension higher to 20000 and more in the fifth wave. We need a breakout here for an extension higher in the fifth uptrend Elliott Wave to 20000 and higher. Invalidation of this immediate upside extension could come upon a break below 19000.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is much lower at 17800 meaning we are in the strong bull uptrend. As said the breakout above 19690 could lead to a 20000 target in the medium-term to long-term if the DAX breaks and sustains a break above 19690.

_{Try a long trade entry with a stop loss below 19200 to target 20500 and higher.}