Short Term Elliott Wave analysis on the DAX Index suggests that it is currently undergoing a correction in its cycle from the low on August 5, 2024. The pullback towards 17024.6 has ended wave ((4)), and the Index has started moving higher in wave ((5)), which is showing a classic impulse Elliott Wave structure. The internal subdivisions of this wave are as follows: wave ((i)) ended at 17505.23, wave ((ii)) at 17233.07, wave ((iii)) at 17666.82, wave ((iv)) at 17439.87, and wave ((v)) at 18920.1, completing wave 1 in a higher degree. Wave 2 retraced to 17669.64 before moving higher.
Subsequently, up from wave 2, the Index saw wave ((i)) ending at 17921.99, wave ((ii)) at 17827.08, wave ((iii)) at 18344.22, wave ((iv)) at 18240.17, and wave ((v)) at 18495.28, completing wave 3 in a higher degree. The pullback in wave 4 ended at 18349.98, followed by wave 5 reaching 18990.78, completing wave (1) in a higher degree. The current wave (2) pullback is in progress and is expected to correct the cycle from the August 5 low in a double three Elliott Wave structure. Wave W ended at 18414.13, wave X at 18607.79, and wave Y is anticipated to continue lower towards the 17659.1 – 18018.6 area before turning higher. As long as the pivot at the 17024.62 low remains intact, any pullbacks are expected to find support for further upside potential.
In conclusion, the DAX Index is showing a corrective pattern in its short-term Elliott Wave analysis, with the current pullback expected to be a part of a larger correction in the overall cycle. Traders and investors should pay attention to key support levels and pivot points to gauge the potential for further upside in the Index. The internal subdivisions of the waves provide a roadmap for the potential price movements, with the expectation of eventual higher highs once the corrective phase is completed. As always, risk management and following the technical analysis indicators are important in navigating the fluctuations of the market. Stay tuned for further updates on the DAX Index as the Elliott Wave patterns unfold.
