Image Source: Pixabay
 

Since June 2025, the German DAX has been largely non-directional, with sharp moves on both sides of the market. Recently, attention has focused on the price holding at key support levels around 23,000–23,300. From this zone, we are seeing a strong and potentially significant rebound.
 

DAX Daily Chart
 

What makes this move particularly interesting is that it follows only three waves down from the all-time highs, which could indicate a WXY complex correction forming as the fourth wave on the daily chart. While alternative labelings are possible, the overall takeaway is consistent: the price action over the past five to six months appears corrective. And with any corrective pattern, a full retracement is often expected, suggesting the DAX may be headed back toward previous highs.
 

DAX 4H Chart
 

The current bounce shows impulsive characteristics, signaling that further gains are likely after any short-term retracement.

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