This is a swing trade setup for the DAX Futures heading into next week using the 4 hour candlestick chart, zoomed in.
Best case scenario: ABC zigzag is completed with 5 waves down in the C closing at the lows..this would mean a 618 reversal back above 10840 or higher on 5 waves down in the C as detailed in the chart. Buying in the 10620-10640 range on the 5th wave could produce nearly 200 points to the upside on a reversal here…BUT the Paris terrorist attacks sent all stocks plunging moments after this event happened..so.. [ms-protect-content id=”61″]
Worst case scenario: The terrorist attacks from last Friday in Paris but a HUGE monkey wrench in all markets..Friday night all major ETF’s like the QQQ SPY and DIA collapsed almost 1% after hours…but will it sustain into Monday? Who knows..if it doesn’t and there’s a positive reversal on Monday, the best case scenario would develop..but a downward 3 would take it below 10,400 in a 1.618 Wave 3…so we have to wait to see how all futures indices open 6PM Sunday evening.
Where I’m leaning: 50/50 until I can actually see the futures…a mild drop in a 5th wave would be a screaming buy..[/ms-protect-content]