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DAX Buyers Step In After Zig Zag Correction
Confirmed
In Short: Buyers have stepped in after the DAX completed a Zig Zag correction, signaling a potential wave X recovery.
Technical analysts are closely monitoring the DAX Index, noting that it completed a Zig Zag correction recently, leading to a wave X recovery against the peak of 26616.21.
In the case of the DAX, wave ((c)) was expected to subdivide into five waves, indicating a continuation of the downward trend.
However, buyers stepped in at the Equal Legs area, signaling a potential recovery phase. The structure is close to completing a five-wave impulsive sequence, with wave (iv) proposed to have completed at 7611.07.
If the DAX breaks above the prior peak of 7816.7, it would complete wave (v) and finalize the cycle from the June 9 low, setting the stage for a larger degree three-wave correction.
This correction would provide a necessary reset before the next directional phase develops, according to technical analysts tracking the DAX Index.
What's confirmed
- We were looking for a break below the wave ((a)) low to confirm further downside extension in wave ((c)).
- The Zig Zag pattern completed, and DAX then started a wave X red recovery against the 26616.21 peak.
- In this technical article, we’ll take a look at the Elliott Wave charts for the DAX Index.
- Recently, the index completed a Zig Zag correction at the Equal Legs area, where buyers stepped in.
- Before looking at the real market example, let’s first take a quick look at the Elliott Wave Zig Zag pattern.
- Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory.
- Inner swings are A,B,C where A =5 waves, B=3 waves and C=5 waves.
- That means A and C can be either impulsive waves or diagonals.
What's still developing
- Nothing material beyond the confirmed record.