An update on the swing projection of the DAX. The price target has been reduced a bit between 11.100 and 11.300. The recent concentration of price might have been the 0.23 fibo level. If the consolidation takes places for a longer time like the red line shows then the price target would be the same but be hit later.
Price should not fall below 10.400.
Notice ...
I can imagine that Dax will bounce back towards 620 or even 575. A range between 620 and 760 is well likely for the coming days. This should only be valid if we do not go straight above 760.
I am a believer in logistic development of Economics. In the long term nothing can just grow forever. In terms of Inflation and an Economy build on the concept of growth, markets require some rest from time to time before continue to grow. Are we in such a state right or or soon?
Scale your view so that the orange circles intersect with the orange nodes (peak) and with the blue circles. You will notice the arcs act as a support for the waves.
I want to show my approach on how I look at declines after a rally. You can notice a resistance at those arcs. In this case, often the 4th down-move does break the circle towards the next one....
This is my first attempt in using Fibo Retracements and Arcs to project a future trend target. This is experimental.
The Fibo arc must intersect with the two orange nodes, this is due to the nature of it's implementation as it does not scale with the chart.
