Elliott Wave signals DAX rally resumption ahead [Video]

The DAX Index experienced a notable correction from the July 11, 2025 high, unfolding in a complex expanded flat Elliott Wave structure. From that peak, wave A concluded at 22,943.06, followed by a rally in wave B that terminated at 25,507.79. The index then reversed lower into wave C, which subdivided into a clear five-wave impulse. Specifically, wave ((i)) ended at 24,349.54, wave ((ii)) retraced to 25,405.97, and wave ((iii)) declined to 22,927.55. A modest recovery in wave ((iv)) reached 24,061.15, before the final wave ((v)) dropped to 21,886.1. This completed wave C of (2) at a higher degree, marking the end of the corrective phase.

From that low, the index has turned higher in wave (3). However, confirmation of a sustained bullish cycle requires a break above the prior peak of wave B at 25,507.79. Without this, the risk of a double correction remains. From wave (2), wave (i) advanced to 23,178.7, while wave (ii) pulled back to 22,209.45. The subsequent rally in wave (iii) reached 23,377.65, followed by a pullback in wave (iv) to 22,677.92. Another leg higher is anticipated to complete wave (v) of ((i)). Afterward, the index should undergo a corrective phase in wave ((ii)), addressing the cycle from the March 23, 2026 low, before resuming its upward trajectory.

In the near term, as long as the pivot at 21,886.1 remains intact, dips are expected to attract buyers. These retracements are likely to unfold in 3, 7, or 11 swings, supporting further upside potential. This structure underscores the importance of maintaining the key pivot while awaiting confirmation through a decisive break above 25,507.79