From an Elliott Wave perspective, the decline from the recent highs is unfolding in a 7-wave sequence, which strongly suggests a corrective structure rather than an impulsive move.
This is a key distinction.
A 5-wave move would imply trend continuation to the downside.
A 7-wave sequence, instead, typically reflects a complex correction, meaning the market is absorbing liquidity rather than initiating a new bearish trend.
At this stage, price action is compressing near the lows, and the structure appears to be maturing.
The confirmation level to watch is 24,264.
A sustained break above this level would signal that the corrective phase is likely complete, opening the door for a trend resumption to the upside.
If this scenario plays out, the DAX has the potential to reclaim higher ground and rotate back toward — and possibly above — 24,794, which marks the prior key high.
Until that confirmation is triggered, the structure remains corrective, but the asymmetry is clearly shifting.
Conclusion:
Corrective market → waiting for confirmation → upside potential building.
This is a key distinction.
A 5-wave move would imply trend continuation to the downside.
A 7-wave sequence, instead, typically reflects a complex correction, meaning the market is absorbing liquidity rather than initiating a new bearish trend.
At this stage, price action is compressing near the lows, and the structure appears to be maturing.
The confirmation level to watch is 24,264.
A sustained break above this level would signal that the corrective phase is likely complete, opening the door for a trend resumption to the upside.
If this scenario plays out, the DAX has the potential to reclaim higher ground and rotate back toward — and possibly above — 24,794, which marks the prior key high.
Until that confirmation is triggered, the structure remains corrective, but the asymmetry is clearly shifting.
Conclusion:
Corrective market → waiting for confirmation → upside potential building.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.