The DAX Index advanced in a clear three-swing rally from the November 21, 2025 low, reaching a new all-time high. Elliott Wave Theory states that a sustained trend typically develops in five waves, not three. The fresh high confirms strong bullish momentum, making it unlikely that the market would conclude its cycle with only three swings.
From the November low, wave 1 ended at 24,474.62. A corrective decline followed, with wave 2 finishing at 23,923.96. This pullback unfolded in a zigzag structure: wave ((a)) ended at 24,173.28, wave ((b)) at 24,318.30, and wave ((c)) at 23,927.96. The completion of this sequence marked the end of wave 2 at a higher degree.
The index then resumed higher in wave 3. From the termination of wave 2, wave ((i)) ended at 24,356.11, while wave ((ii)) retraced to 24,203.37. A strong rally in wave ((iii)) carried prices to 25,428.43. Wave ((iv)) corrected modestly to 25,338.30, and the final leg, wave ((v)), extended to 25,507.79. This completed wave 3 at a higher degree.
Currently, wave 4 is unfolding as a corrective phase. It is designed to adjust the cycle from the December 18, 2025 low before the next upward stage begins. In the near term, as long as the pivotal support at 23,927.96 remains intact, the expectation is for the decline to stabilize. Support is likely to appear in a three, seven, or eleven-swing structure, setting the stage for renewed upside momentum.
