Long Term Forecast – DAX Index (Germany)

DAX index developed in a strong motive wave III that started in 2003 and still continues. The index is approaching its major Fibonacci level of 1.618, 13838, and is only 500 points away. I believe that the 1.618 level would be a major reversal point where the wave III could end and start a multi-year correction in a wave IV. The wave IV could find its support at the level of wave (4) of a lesser degree, approximately 8300. The shape of the wave is unknown at this point. The duration of the wave could be estimated based on the channel. However, the final channel is not known. There are two possible channels for the index. The long term green one is baselined on tops of waves I and (3). The dotted red one is sitting on the bottoms of waves II and (2). The channel line will be adjusted once the top of III is printed. Depending on which channel is taken, this wave could take about 3 or many more years.
I will return to the topic after the major top is made.

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