GER40 (DAX) – Short-term corrective scenario within a larger uptGermany 40CAPITALCOM:DE40COLOMBINI-TRADINGPrice is currently trading in a mature bullish structure, after a strong impulsive move that can be labeled as wave (3) of a higher-degree advance. From the recent high, the market is developing a corrective phase, likely a wave (4), unfolding as a complex correction. Key observations The impulsive structure into the high shows clear momentum exhaustion. Price is now consolidating below the highs, forming a corrective channel / wedge, suggesting distribution rather than continuation. Moving averages (fast and mid-term) have started to flatten, while price remains extended above the longer-term MA, increasing the probability of a pullback. Corrective structure The current correction can be interpreted as an A–B–C pattern: Wave (a): initial drop from the top. Wave (b): corrective rebound, currently in progress or recently completed. Wave (c): expected downside continuation to complete wave (4). Fibonacci confluence zone The projected target area for wave (4) aligns with a strong Fibonacci cluster: 1.382 extension ≈ 25,146 1.618 extension ≈ 25,104 2.000 extension ≈ 25,036 This zone also coincides with: Previous structure support Dynamic support from the rising longer-term moving average Bias Short-term bias: bearish / corrective Medium-term bias: bullish (as long as price holds above the main structural support) A clean move into the Fibonacci support zone would represent a healthy correction, potentially setting the stage for a future wave (5) to the upside. Invalidation A sustained break and hold above the recent highs would invalidate the corrective scenario and suggest trend continuation instead.