7-Wave Correction Suggests Upside Reversal Potential in DAXGermany 40CAPITALCOM:DE40COLOMBINI-TRADINGFrom an Elliott Wave perspective, the decline from the recent highs is unfolding in a 7-wave sequence, which strongly suggests a corrective structure rather than an impulsive move. This is a key distinction. A 5-wave move would imply trend continuation to the downside. A 7-wave sequence, instead, typically reflects a complex correction, meaning the market is absorbing liquidity rather than initiating a new bearish trend. At this stage, price action is compressing near the lows, and the structure appears to be maturing. The confirmation level to watch is 24,264. A sustained break above this level would signal that the corrective phase is likely complete, opening the door for a trend resumption to the upside. If this scenario plays out, the DAX has the potential to reclaim higher ground and rotate back toward — and possibly above — 24,794, which marks the prior key high. Until that confirmation is triggered, the structure remains corrective, but the asymmetry is clearly shifting. Conclusion: Corrective market → waiting for confirmation → upside potential building.