- I’m watching the DAX trade noisily around its 50-day EMA, which currently looks flat but supportive.
- I see short-term pullbacks as buying opportunities, with 24,500 as key resistance and 23,000 marking major support, which is the “floor in the market” that I see at the moment.
The DAX in Germany continues to be very noisy as it moves around the 50-day EMA. This indicator is one that many traders pay close attention to, as it often defines the quarterly trend. Right now, the 50-day EMA is relatively flat, though it’s providing a bit of support, which is a positive sign. I think short-term pullbacks could open up buying opportunities, and with enough time, we could see a breakout to the upside. The 24,500-euro level has acted as an important barrier, and if we can clear it decisively, the market could move toward 25,000. A sustained break above that would likely signal the start of the next leg higher.
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Flat Recently, But Reliable
Germany’s market has been somewhat flat recently, which makes sense given uncertainty around global trade. As we see more progress on trade agreements—possibly between the United States and China—risk appetite could improve across markets. Even though the DAX has underperformed New York for months, it remains far from negative. Germany is typically the first place capital flows within the EU, making the DAX a bellwether for other regional indices as it is by far the biggest destination for foreign and domestic inflows into equities.
If Germany rallies, smaller European markets like the MIB or AMX will likely follow. At this stage, I view pullbacks as buying opportunities, with the 23,000-euro level serving as the floor. The 200-day EMA in that same area adds strong technical support. As long as we hold above that zone, I have no interest in shorting this market.
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