Welcome to Extreme Investor Network, where we provide you with unique insights and expert analysis on the Stock Market, trading, Wall Street, and more. Today, we are taking a closer look at the DAX and its near-term outlook, as well as key technical indicators to keep an eye on.
In the near term, the trends in the DAX will be heavily influenced by sentiment towards US tariffs, central bank commentary, and economic indicators. Fears about tariffs and higher-than-expected US producer prices could impact demand for DAX-listed stocks, potentially causing a pullback towards 18,750. It is important for investors to stay informed and monitor US economic indicators, Trump-related news, and central bank guidance to effectively manage risks.
Looking at the technical indicators, the DAX is currently below the 50-day EMA but holding above the 200-day EMA after a recent loss. This indicates bearish near-term sentiment but bullish longer-term signals. A breakout above the 50-day EMA could pave the way for a target of 19,350, with a further potential target of 19,500. On the other hand, a drop below Wednesday’s low of 18,839 could signal a decline towards 18,750, and potentially even 18,500 if the bears take control.
With the 14-day RSI at 44.45, there is a possibility of the DAX breaking below 18,750 before entering oversold territory. It is crucial to stay informed about Euro area and US economic indicators, as well as central bank comments, to make well-informed trading decisions.
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