Dax Index Faces Upside Struggles As It Continues the Bounce
The Dax 30 index dived hard early this month, losing 10% of the value, but it bounced higher last week as buyers came back.

The Dax 30 index dived hard early this month, losing 10% of the value, but it bounced higher last week as buyers came back. However, they face obstacles higher up, particularly around 18,200 points where we have the 100 daily SMA and the support from the first two months of summer.
Dax Chart Daily – The 200 SMA Held As Support
Global Market Turmoil Sparks Spooks Financial Markets
Earlier this month, global financial markets were thrown into chaos by a combination of a dismal US nonfarm payrolls report, rising tensions in the Middle East, and a sudden policy shift in Japan. This unexpected series of events created a perfect storm, unsettling the financial system and leading to record highs in bond prices while US stocks plummeted. The sharp decline in risk assets prompted market participants to begin pricing in the possibility that the Federal Reserve might slash interest rates more aggressively this year. The convergence of these unfavorable factors set the stage for a potential global market collapse.
Stock Market Recovery and Optimistic Week for DAX 30
The Nikkei took a staggering 12% dive, while the DAX 30 tumbled to 17,000 points. However, the downward spiral halted during the US session on Monday, and the markets resumed their bullish trend. The DAX 30, after briefly dipping below the 200-day SMA (purple), rebounded and ended the day above it. The remainder of the week saw a return to optimism, with the DAX closing higher on Friday, driven by gains in the telecom, food and beverage, and financial services sectors.
German corporate earnings reports for Q2 were solid, contrasting with weaker earnings from US corporations. The auto sector particularly benefited from the earnings beat, with Mercedes-Benz Group and Daimler Truck Holding posting gains of 2.23% and 2.05%, respectively. Deutsche Telekom AG also reported a highly successful second quarter and first half of 2024, showing significant growth in key financial metrics and strategic progress in both European and American markets.
Dax 30 Live Chart
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
HFM
Related Posts
Doo Prime
XM
Best Forex Brokers
