Is the DAX Preparing for a Monster Rally? The Structure Says So.

The DAX continues to follow a well-defined Elliott Wave structure across the higher time frames. Following the completion of Wave 1 at the prior cycle top, the subsequent corrective phase retraced efficiently into the 0.618 Fibonacci region, establishing a structurally sound Wave 2 low. Since then, price has progressed through a multi-year impulsive advance, with internal subdivisions aligning cleanly with higher-probability Fibonacci extensions.

Current price action is positioned within the latter stages of an extended Wave 3 sequence, where the 2.618 extension zone presents a significant confluence region for a potential medium-term top. A controlled corrective phase is expected thereafter, forming Wave 4 before the index resumes its structural bullish trajectory toward the projected Wave 5 completion.

This long-term framework remains valid as long as structural lows are preserved, with the broader trend supporting continued upside over the coming cycles.

⚠️Disclaimer
This analysis is provided for educational purposes only and does not constitute financial advice. Trading financial markets involves risk, and you are solely responsible for your own investment decisions. Always conduct your own research and use proper risk management.

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