The German DAX continues to push higher and is now challenging the previous highs, showing impressive relative strength compared to US equities. Despite the recent weakness in US stock markets, European indices have remained resilient, and if US stocks complete their current corrective pullback, the DAX could potentially gain enough momentum to break into new all-time highs.
Looking at the daily chart, the broader trend remains bullish, with the index still trading within a strong recovery phase. However, the internal structure of the advance has become increasingly choppy, suggesting that the current move may be approaching a more mature stage.
On the 4-hour chart, the latest price action can potentially be interpreted as an ending diagonal formation. If this scenario is correct, the DAX may now be completing the final wave five of this wedge pattern. While another push higher toward fresh highs remains possible, ending diagonals often appear near the end of a larger move and can signal weakening momentum.
The key resistance area to watch is around 26,200–26,500, where the index could complete an ABC structure within the final fifth wave. A move into this zone could mark the final stages of the current advance before a larger corrective phase begins.
For now, the trend remains positive as long as the DAX continues to hold above key support levels. However, traders should be aware that while new highs are still possible, the upside may become increasingly limited as the index approaches the projected resistance zone.
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