Dax Elliott Wave: Buyers Step in After Zig Zag Correction

According to an Elliott Wave technical analysis of the DAX Index (Germany 40), buyers have entered the market following the completion of a corrective Zig Zag structure. The 1-hour chart analysis highlights that the index developed a classic 5-3-5 corrective pattern, beginning with a five-wave decline in wave ((a)), followed by a three-wave corrective bounce in wave ((b)), and culminating in a five-wave downside extension in wave ((c)). The corrective wave ((c)) successfully fulfilled its technical projections by breaking below the wave ((a)) low and reaching the designated Equal Legs target area between 25274.27 and 25062.60. Strong buying interest emerged immediately within this support zone, completing the Zig Zag correction as anticipated. Following the reaction at the Equal Legs boundary, the DAX has initiated a wave X recovery against the recent peak of 26616.21. Technical analysts anticipate a multi-wave bounce to unfold from this region, offering short-term upward momentum for European equity traders as buyers defend the critical support zone.