The DAX is staging a very strong recovery, printing consistent higher highs and higher lows since the March 23 low, which clearly suggests that bulls are back in control. The advance appears impulsive in nature, reinforcing the view that this is not just a corrective bounce, but the start of a larger bullish sequence.
Price has broken above the base channel near 23,300, triggering a strong extension higher, with the current structure potentially still unfolding within wave three, typically the most powerful phase of an impulsive move.
While the market may soon approach near-term resistance, any wave four pullback should be viewed as a temporary correction within a broader uptrend. After such a pullback, we would expect further upside continuation, with the next key objective seen around the unfilled gap from March 1st.
On the downside, support is located between 24,000 and 23,600, making this zone particularly important for potential dip-buying opportunities. A break below this region could open the door for a deeper correction, with the gap near 23,169 acting as the next key level to watch.
From a 4-hour perspective, once we see a clear five-wave structure to the upside, it would confirm that a higher-degree wave four bottomed near 22,000. This would then support the case for a developing wave five extension on the daily chart.
If this bullish scenario continues to play out, the DAX could extend toward the 26,000 region, aligning with projections from the higher time frame structure.
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