DAX is making a very nice recovery, with higher highs and higher lows from the March 23 low, which suggests bulls are back in control. Price is actually recovering impulsively and broke out, above the base channel near 23300, leading to a strong extension higher, possibly still in wave three. While the market may be approaching some near-term resistance, after a wave four pullback we would expect further strength, at least toward the unfilled gap from March 1st. On dips, support is seen between 24000 and 23600, which are key levels to watch for potential entries. Below that, the gap around 23169 remains important, especially if a deeper correction unfolds.
Once we see a full five-wave structure up on 4h TF, that would confirm a higher degree wave four completed near 22000, opening the door for a wave five extension, potentially even toward 26000 based on the daily chart.
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