Dax chart of the day: Wave five signals more upside

The DAX (XETRA: DAX) continues to follow a bullish Elliott Wave structure after completing red wave 4 at 24,651. The index confirmed the resumption of the uptrend by breaking above the red wave 3 peak at 25,900, signaling that red wave 5 is now in progress. More importantly, the rally from the 21,863 low continues to unfold as a five-wave impulsive structure, keeping the broader trend firmly bullish while price remains above the 24,651 invalidation level.

The 60-minute Elliott Wave chart shows that wave 5 is developing through a bullish nest structure in ((i))-((ii)) and (i)-(ii) sequence, while price is now advancing in wave (iii) of the next degree. Once wave (iii) reaches completion, we expect a corrective pullback in wave (iv) before buyers return to drive the next advance. This sequence should then unfold into ((iii)) and ((iv)), maintaining the impulsive structure and supporting additional gains in the coming sessions.

Based on the current Elliott Wave count, we expect the rally to extend toward 26,702, which remains our initial upside target for red wave 5. However, strong momentum within the impulsive sequence suggests the DAX could extend beyond this level before the larger trend completes.

Overall, our DAX Elliott Wave forecast remains bullish. As long as the index holds above 24,651, traders should continue to favor buying pullbacks. The ongoing impulsive structure points to continued upside, with 26,702 serving as the next key target while leaving room for further gains if bullish momentum accelerates.

Dax 60 Min, Elliott Wave chart