Selling pressure pushes DAX index lower in today's trading

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Dax index slides 1.62% today

Highlights

DAX trades between short-term resistance and medium-term support, reflecting ongoing selling pressure amid longer-term bullish undertones.
Momentum indicators are mixed, with daily weakness and intraday overbought signals despite the index's approach toward oversold levels.
The baseline forecast expects DAX to consolidate between 23,770 and 24,235 points over the next five sessions, barring breakout or breakdown moves.

Anton Kharitonov, expert at Traders Union, observes that DAX's recent 1.62% decline signals heightened short-term risk. He notes the price remains trapped below its 20-day average but only slightly above the 50-day, reflecting waning momentum. Technical signals are mixed and sentiment indicators point toward growing vulnerability, especially with sellers dominating intraday action. Absence of supportive news further increases downside risk. "Until momentum and sentiment recover decisively, I see little justification for aggressive long exposure here."

Viktoras Karapetjanc, expert at Traders Union, acknowledges today's setback but believes the DAX retains its broader bullish structure by holding above the 50-day average. He sees technicals supporting medium-term resilience, with constructive signals from MACD and RSI confirming latent buyer interest. The index sits near crucial support and may offer new setups for growth if buyers respond. "Despite short-term swings, the market offers opportunities — further gains should not be ruled out if momentum returns quickly."

Jainam Mehta, market strategist, views the recent downside gap and drop as a tactical reset within a wider trading corridor. He notes the divergence between weak intraday momentum and ongoing medium-term strength, suggesting possible range-bound behavior. A break beyond the 23,770 or 24,235 levels could create sharp directional moves. "Active traders may watch for a contrarian bounce if oversold signals deepen further this week."

Mixed momentum persists as index straddles support and resistance

DAX is currently trading below the 20-day moving average (24,245.77) but above the 50-day (23,781.44), positioning the index between near-term resistance and medium-term support. This mixed position suggests short-term selling pressure, with medium- and long-term trends still constructive; the nearest dynamic support is the Kijun level at 23,918.27, while resistance now forms near the 20-day average.

Momentum signals are mixed: the Moving Average Convergence Divergence (MACD) continues to give a positive reading, but the Average Directional Index (ADX) is neutral and weak. The Relative Strength Index (RSI) remains comfortably above 50, indicating underlying bullishness, yet the Stochastic RSI and Commodity Channel Index (CCI) confirm the index is approaching oversold levels on multiple intraday timeframes. Bull/Bear Power (BBP) currently signals overbought conditions but shows that sellers are dominating intraday momentum, fitting with the index’s 394-point drop, a 1.62% decline after a clear downside gap of about 319 points at the open. The price now sits close to the low of the daily range, daily volatility stands at 0.77%, and the tone remains under pressure following the opening weakness. Divergence is present as daily momentum is weak, even as some D1 trend signals hint at longer-term resilience.

Earlier, analysts noted that the DAX was experiencing a strong bullish trend supported by robust investor sentiment and favorable technical signals. The current pullback introduces increased two-way risk in the short term, making the 23,770.34 support level a critical threshold to monitor for potential shifts in market direction.

Source of Data: DAX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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