Germany DAX Index

I thought I have written about Germany DAX index before. But tracking back the articles, apparently I have not.

I think it is because I could not properly read DAX earlier and unable to deduce where it might be going. However, when I looked at this index again, there seems to be something I have missed out.

To start with, DAX have reached a new height, which makes it difficult for me to determine which wave we are looking at. If it is a counter ware, it certainly looks strange to have a new height. However, the zig zag movement from 2009 till now looks more like a B wave of a counter wave. While slightly uncommon, it is possible to have the B wave higher than A.

Another thing that I saw was a tapering behavior of the index. If you observe the orange envelop, it clearly shows the tapering effect, which establish the wedge formation. This is more like one of the 5th wave behavior.

If this is true, base on present measurement, 6,600 is a possibility.Prior to that there might still be a chance for this index to go higher.