Rally in DAX to 16299.31 ended cycle degree wave I. This completed the rally which started from March 16, 2020 low. The Index is currently in wave II to correct cycle from March 2020 low in larger degree pullback wave II. 30 minutes Elliott Wave chart below suggests the internal subdivision of wave II as a zigzag structure. Down from wave I, wave (1) ended at 15740.6 and rally in wave (2) ended at 15962.54. Index then resumes lower in wave (3) towards 15245.35, and rally in wave (4) ended at 15441.91. Final elg lower wave (5) ended at 15016.66 and this completed wave ((A)).
Rally in wave ((B)) is in progress to correct cycle from November 18, 2021 peak. The internal subdivision of wave ((B)) unfolded as a double zigzag structure. Up from wave ((A)), wave (W) ended at 15509.46 and dips in wave (X) ended at 15101.71. Final leg higher wave (Y) is in progress as another zigzag. Potential target for wave (Y) is 100% -161.8% Fibonacci extension from November 30, 2021 low which comes at 15601 – 15906 area. Index should then resume lower from this area or pullback in 3 waves at least. Near term, as far as pivot at 16299.31 stays intact, expect rally to fail in 3, 7, 11 swing for more downside.
