DAX Confirms Bullish Reversal With Inverse Head & Shoulders
26 November 2025
In today's technical analysis, let's examine the DAX, which delivered a significant reversal this week after a very difficult previous two weeks. The key element on the chart is the green horizontal support — a level that has been holding the index since the end of June. Recently, this support was broken, but only for a short moment, as buyers quickly stepped in and pushed the price back above it. This makes the move a false breakout, a classic bullish signal.
This false breakout is shaped as an inverse head and shoulders formation, highlighted with an orange rectangle. The neckline of this formation, marked in red, has already been broken to the upside, confirming the reversal structure. As long as the DAX remains above the green horizontal support, the sentiment stays positive and buyers remain in control.
With the neckline broken and the false breakout fully negated, the technical picture favors continuation of the bullish leg. As long as we hold above the green zone, the DAX should be poised to aim for new long-term highs in the near future.