DAX 40 Index (Germany) Wave technical analysis [Video]

DAX (Germany) Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Orange Wave 1.

• Position: Navy Blue Wave 3.

• Direction next lower degrees: Orange Wave 2.

• Details: Navy Blue Wave 2 appears completed. Now, Orange Wave 1 of 3 is underway.

• Cancel invalidation level: 18530.

The DAX (Germany) daily chart analysis highlights a bullish trend developing within an impulsive Elliott Wave structure. The index has completed the navy blue wave 2 correction and has now moved into orange wave 1, inside the broader navy blue wave 3 structure. This setup signals the early stage of a new impulse wave, which could drive strong upward momentum in the upcoming sessions.

Orange wave 1 marks the beginning of this new impulsive sequence, often seen with gradually building momentum as the market gains directional strength. The completion of navy blue wave 2 sets the groundwork for this movement, which typically shows progressive gains before more aggressive momentum appears. The current reading suggests a step-by-step rise before meeting the next corrective phase.

Next movement expectations

An important level to monitor is 18530, serving as the invalidation point for the bullish wave interpretation. A move below this level would invalidate the current pattern and require a new assessment. This support level is crucial in maintaining the wave 2 low's integrity.

On the daily timeframe, the developing impulse wave presents opportunities for creating new upward positioning. Traders should observe classic wave characteristics, such as steady volume growth and consistent upward steps, noting that wave 1 usually progresses without the explosive force seen in wave 3.

Following the completion of wave 1, the next expected move is a corrective orange wave 2, which should offer a pullback before a potentially stronger wave 3 push higher. Watching price behavior and momentum indicators will help validate the wave structure and pinpoint the transition to wave 2.

Technical indicators and price patterns will be critical for confirming the wave setup. With the transition into navy blue wave 3 at the higher degree, stronger momentum waves are expected ahead, making this stage vital for setting strategic long positions.

DAX (Germany) Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Navy Blue Wave 3.

• Position: Gray Wave 3.

• Direction next higher degrees: Navy Blue Wave 3 (Started).

• Details: Navy Blue Wave 2 appears completed. Now, Navy Blue Wave 3 of 3 is in play.

• Cancel invalidation level: 18530.

The DAX (Germany) weekly chart analysis shows a strong bullish trend unfolding within an impulsive Elliott Wave structure. The index has finished the navy blue wave 2 correction and entered the navy blue wave 3 phase within the larger gray wave 3 structure. This setup points to the beginning of the most dynamic portion of the upward movement, often marked by extended price gains and strong momentum.

Navy blue wave 3 represents the main trending portion in Elliott Wave theory, typically delivering the strongest movement in the direction of the trend. The conclusion of wave 2's correction sets the ground for this major advance, which generally surpasses the size of wave 1. The current structure suggests that the upward momentum is likely to continue forcefully before reaching the next corrective phase.

Next movement expectations

The weekly timeframe offers essential insight into the developing structure, indicating that this movement is a major phase within the broader bullish trend. Transitioning into gray wave 3 at the higher degree suggests that this could be part of a significant, longer-term uptrend. An important level to monitor is 18530; a break below this point would invalidate the current bullish count and require reassessment.

Market participants should track the progression of wave 3 for typical signs such as strong momentum, rising volume, and consistent price movement. The current analysis favors maintaining bullish positions during this impulsive phase, while carefully observing for signs indicating wave completion. Technical indicators and price action will provide key confirmations as the structure evolves.

After wave 3 concludes, the next expected development is navy blue wave 4, providing a pullback opportunity before any potential continuation of the bullish move. This phase represents an optimal time for trend participation, as wave 3 typically offers the best trading conditions within Elliott patterns.

Technical analyst: Malik Awais.

DAX (Germany) Wave technical analysis [Video]