Snippet taken from a this weekends post.

Short term a minor new high is ideally see to end 5 waves from 12744 to complete wave [c] of an expanded flat pattern for wave B, this idea makes more sense with the other markets such as the CAC and EURSTOXX, which are closely correlated markets to the DAX. Ideally any upside stays below 13400. If it starts to race away above 13400, then I think we seriously need to consider that wave [5] is underway. A strong move back under 13200 and then remains below 13200  is needed to support more weakness back below 12700.

A move lower for wave C to end wave [4] is still favored, a test of 12400 – 12600 is a good area to end wave C of wave [4] and setup for a move higher for wave [5]. A move lower can also allow other European markets to correct and pullback and complete their respective 4th waves.

Read the rest of this detailed post here by signing up to the European markets package and get regular analysis of the DAX and FTSE.

Click here to sign up for updates for the FTSE and DAX  CLICK HERE