The German DAX Index has been trading within a gentle upward channel for several months and is now testing the lower boundary of that channel around the key support zone of 23,600–23,800. This level also aligns with the 50-day moving average (SMA50), which adds extra strength to the support.
In the short term, if the index holds above 23,700 and forms a bullish reversal candle, a rebound toward 24,500–24,800 (the top of the channel) is likely. The stop loss for this bullish setup would be a confirmed breakdown below 23,400.
However, if selling pressure continues and the price closes below 23,400, it could trigger a deeper correction toward 22,800–23,000, signaling a potential trend shift in the medium term.
From a long-term perspective, as long as the DAX remains above 23,000, the broader trend stays bullish, with next major upside targets around 25,000–25,500.
In short, the current area represents the dividing line between a continuation of the uptrend and the beginning of a medium-term correction in the German market.
In the short term, if the index holds above 23,700 and forms a bullish reversal candle, a rebound toward 24,500–24,800 (the top of the channel) is likely. The stop loss for this bullish setup would be a confirmed breakdown below 23,400.
However, if selling pressure continues and the price closes below 23,400, it could trigger a deeper correction toward 22,800–23,000, signaling a potential trend shift in the medium term.
From a long-term perspective, as long as the DAX remains above 23,000, the broader trend stays bullish, with next major upside targets around 25,000–25,500.
In short, the current area represents the dividing line between a continuation of the uptrend and the beginning of a medium-term correction in the German market.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.