I wrote recently about DAX here. Situation is interesting because on longer time frames we can see possible end of correction.

Now we have another confirmation – price closed above resistance line. It is also above Ichimoku cloud (last time it was above cloud in August 2015). We can also see a large ABC pattern:

dax-weekly-2016-08-16

Take a notice that MACD (21,33,12) is about to cross 0 line. So another bullish signal.

Of course this current weekly candle is still forming.

On daily chart we can see that DAX is right below monthly R1 line:

dax-daily-2016-08-16

If DAX manage to break above, we can see move to the R2 line and maybe B point? For now it is good to be aware about this action on weekly timeframe.

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