DAX Pushes Into Channel Resistance as Wave 3 Extension Toward 26,500 Comes Into Focus

The DAX is continuing its strong upside momentum, with price action showing a clean and sustained push higher into the upper boundary of the rising channel. The index has now reached the 25,800 area, which is an important technical resistance zone and may temporarily cap further gains.

However, the broader structure remains firmly bullish. If price manages to break and hold above this upper channel line, it would serve as a strong confirmation that the market is transitioning into wave three of a larger impulsive recovery. This scenario aligns well with recent price behavior, especially given that the index closed the previous week at the highs, a typical signal of continued bullish continuation into the following sessions.

Bullish Scenario: Wave 3 Extension

If momentum continues to build, the next logical upside target comes in around the 26,500 region, which aligns with a potential wave three extension. This move would be supported as long as price remains above the key 25,217 invalidation level, which currently defines the bullish structure.

Holding above this level keeps the impulsive count intact and supports the idea that the current rally still has unfinished upside potential.

Bearish Alternative: Return to Corrective Structure

On the other hand, if the market breaks down below 25,217, the bullish impulsive scenario would be invalidated. In that case, price action would likely shift back into the previously discussed flat correction structure, suggesting that the recent rally is corrective rather than impulsive in nature.

Overall, the DAX remains in a technically strong position, with bullish momentum still dominant unless key support levels are lost. The coming sessions will be critical in confirming whether the market extends into wave three or transitions back into a broader corrective phase.

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