DAX Rebounds After False Breakout at Key Support
29 August 2025
Friday’s European open on the German DAX brings us an interesting setup right at a key level. The index dipped below the crucial green horizontal support at 23,980 points, but this move quickly turned into a false breakout. Marked with yellow on the chart, the failed breakdown signals that sellers were not able to sustain the pressure, and buyers quickly regained control.
This recovery above support restores a positive sentiment for DAX. As long as the index remains above the green line, the technical picture favors the bulls and a buy signal remains in play. The false breakout itself strengthens the bullish case, as such moves often fuel rallies in the opposite direction.
Looking ahead, the black downtrend line now acts as the next major obstacle. A breakout above this line should give buyers the confidence to accelerate the upswing, potentially opening the way toward new highs in the near term.