DAX is slowing down and now attempting to break the support line of the impulsive channel drawn from the March swing lows, signaling that momentum is fading and a higher-degree correction may be unfolding. The current price action can be interpreted as a potential leading diagonal forming within wave (A), which often appears in early stages of a broader three-wave correction.
If this structure is confirmed, we should expect a continued three-wave (A)(B)(C) decline, although a temporary stabilization or corrective bounce in wave (B) is still likely before further downside resumes in wave (C). This would fit a typical corrective sequence where initial weakness is followed by a counter-trend recovery before continuation.
On the downside, the first key area of interest lies around the previous wave four support near 23,600. If selling pressure continues, a deeper move toward the 23,170–23,000 region becomes possible, where a major unfilled gap is located. Such gap zones often act as strong reaction areas and could eventually trigger a meaningful rebound once filled.
Despite the current weakness, this correction would still be consistent with a larger-degree bullish structure, where the broader expectation remains that the index could retest all-time highs later in the year as part of a higher-degree wave five advance on the daily timeframe.
If this structure is confirmed, we should expect a continued three-wave (A)(B)(C) decline, although a temporary stabilization or corrective bounce in wave (B) is still likely before further downside resumes in wave (C). This would fit a typical corrective sequence where initial weakness is followed by a counter-trend recovery before continuation.
On the downside, the first key area of interest lies around the previous wave four support near 23,600. If selling pressure continues, a deeper move toward the 23,170–23,000 region becomes possible, where a major unfilled gap is located. Such gap zones often act as strong reaction areas and could eventually trigger a meaningful rebound once filled.
Despite the current weakness, this correction would still be consistent with a larger-degree bullish structure, where the broader expectation remains that the index could retest all-time highs later in the year as part of a higher-degree wave five advance on the daily timeframe.
Join the community and get access to our analysis >> @ wavetraders.com/
Learn Elliott Waves Sale-65%
👉 wavetraders.com/academy/
Newsletter
👉 bit.ly/3FVPVzO
Learn Elliott Waves Sale-65%
👉 wavetraders.com/academy/
Newsletter
👉 bit.ly/3FVPVzO
Publicações relacionadas
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Join the community and get access to our analysis >> @ wavetraders.com/
Learn Elliott Waves Sale-65%
👉 wavetraders.com/academy/
Newsletter
👉 bit.ly/3FVPVzO
Learn Elliott Waves Sale-65%
👉 wavetraders.com/academy/
Newsletter
👉 bit.ly/3FVPVzO
Publicações relacionadas
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.