Key Levels in Focus
Upside Breakout:
A decisive break above 19,311 points (the current upper range limit) could signal a push toward 19,400 points or higher. The 19,500 mark could become a realistic target if bullish sentiment strengthens, supported by macroeconomic factors or positive earnings reports.
Downside Risk:
A fall below 19,130 points could lead to a test of the psychological 19,000-point level. Below this, 18,834 points (last week’s low) would be the next focus area.
DAX Analysis for Today's Trading Session:
1. Current Situation and Pre-Market
The DAX managed to recover overnight from yesterday's low of approximately 19,130 points, climbing briefly to 19,237 points.
Since then, the index has shown signs of weakness, slipping lower in pre-market trading. It continues to trade within its established range between 18,838 and 19,311 points.
2. Key Technical Levels
Support Zones:
19,130 points (yesterday's low): A break below this level would likely trigger a retest of the psychological 19,000-point mark.
18,834 points (last week's low): If 19,000 fails to hold, this level will become a significant focus for traders.
Resistance Zones:
19,308 points (Thursday's high): Clearing this level could generate bullish momentum.
19,311 points: The upper boundary of the current sideways range.
3. Scenarios for the Trading Day
Bearish Scenario:
A break below yesterday's low of 19,130 points could see the DAX testing the 19,000 level.
Further weakness might drive the index down to the 18,834-point support zone, where sellers will face a critical test.
Bullish Scenario:
If the DAX climbs above 19,308 points, this could signal a short-term recovery. A push beyond this level might pave the way for a move toward 19,400 points, where additional resistance is expected.
4. Market Sentiment and External Factors
Yesterday's lack of momentum suggests another potentially quiet trading session unless external drivers emerge.
US indices show a slightly positive pre-market trend, though it remains uncertain whether this optimism will spill over into European markets.
Without clear "catalysts," bulls lack the momentum needed to drive the index toward higher levels.
5. Conclusion
The DAX remains confined to its range between 18,838 and 19,311 points in the short term.
The key focus will be whether the index holds above yesterday's low or if the bulls can push it past the resistance zone around 19,308/19,311 points.
Given the mixed signals and current pre-market weakness, the bears are likely to have the upper hand today.
"As always, this is my opinion and solely my personal opinion.
Not a trading recommendation!"