German DAX Movement Forecast

DAX at Fundamental Level

European stocks rose to record highs on Tuesday, buoyed by stabilizing commodity markets and easing trade and geopolitical tensions.

Data released today showed French inflation unexpectedly fell to a five-year low last month, increasing the likelihood that inflation in the eurozone will remain below the European Central Bank's target for longer this year.

The pan-European STOXX 600 index jumped 0.7% after rising 1% on Monday, while France's CAC 40 added 0.6% and Britain's FTSE 100 climbed 0.2%. The German DAX index rose to its highest level in two weeks, climbing 1.1% today to 25,125 before retreating back below 25,000.

Technically

DAX is attempting to complete a harmonic cypher pattern near 25,270, which extends to the 25,400 level.

If this level is reached, we expect the DAX to decline again, targeting 25,100 and then 24,750.

This scenario would be invalidated if the index breaks above 25,570.

Note: This is not an invitation to buy, but rather to wait for prices to reach the sales areas.