In today’s technical analysis, let’s take a closer look at the German DAX.
Yesterday brought a very important and volatile session. Monday started with a sharp drop, but as the day unfolded, the index managed to stage a bullish reversal. Now, Tuesday morning extends that positive momentum, adding weight to the reversal narrative.
From the technical perspective, the context is clear. The market is still under the influence of a false bearish breakout, marked with a green rectangle below the yellow support. That breakout was short-lived, as buyers quickly regained control. Yesterday’s dip retested the yellow support once again, and the reaction was positive — DAX bounced decisively, confirming the strength of this key level. Adding to the optimism, the price also broke above the orange resistance, and holding above both the orange and yellow supports keeps the sentiment firmly bullish.
The last piece of the puzzle is the red downtrend line. As long as it holds, sellers still have a chance to resist. But a breakout above this dynamic barrier would mark a long-term bullish victory for DAX and deliver a proper, confirmed buy signal. Until then, the short-term tone is encouraging, but the real confirmation lies just above.