On the 30-minute chart of Daimler AG’s stock we see a clear impulsive decline in five waves from 71.25 to 63.95 euro per share. According to the Elliott Wave Principle, impulse waves show the direction of the larger trend, so in this case the larger trend is pointing down. But after every five waves, a three-wave correction follows. This means that the rally, which started from the bottom of 63.95 must be corrective. We are expecting a third leg up in wave (c) of (2)/B, which could lead prices to the 69.00 area before the downtrend resumes. This count would be invalidated, if Daimler AG goes above 71.25, while the minimum downside target is below 63.95.
Chart by www.trader.bg
