Chart of the day

Where do we stand fundamentally?

The DAX index has been experiencing mixed market sentiment recently, driven by various global and regional factors. On October 8, 2024, the DAX saw a slight decline of 0.20%, influenced by concerns about the Chinese economy and the impact on demand for German exports, especially in the auto sector. Leading auto companies like Mercedes-Benz and BMW saw notable drops, reflecting concerns over slowing Chinese demand, which is vital for these companies

DAX is retesting strong support 19000 a previously broken upside resistance. A bounce here and a break above 19270 resistance will lead to an extension in the fifth wave higher as the DAX is finishing the fourth wave pullback. Invalidation of this immediate upside extension could come upon a break below 18800.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is 16000. As said this extension higher could lead to a 22000 target in the medium-term to long-term if the DAX breaks above 19270 with a confirmation.

_{Try a long trade entry with a stop loss below 19000 to target 20000 and higher.}