Start of December: Correction Monday or Leap to the 24,000 Point Mark?
The DAX is heading into a crucial trading week where the question is whether the jump above the psychologically important 24,000-point mark will succeed. The past week, which was quiet due to the US holiday, closed positively for the German leading index on Friday with a gain of 0.29 percent at 23,836.79 points. The 24,000 level could now become the resistance that sets the tone for the beginning of December.
US Labor Data and Peace Talks Remain in Focus
In the upcoming trading week, fundamental data will move back into focus. This Wednesday, the ADP labor market data will be released, which may give the market clues about a potentially imminent cut to the US key interest rate. Besides this data, it will remain exciting for investors how the peace talks between Ukraine and Russia develop.
After a long time, Deutsche Börse shares returned to the top 3 DAX stocks on Friday. A gain of 2.2 percent secured the stock the day's victory, ahead of Infineon AG. Infineon rose by 1.7 percent, and Volkswagen AG closed in third place with a gain of 1.2 percent. Rheinmetall shares remain in correction, finding less interest due to the peace efforts in Ukraine.
Will the DAX Break the 100-Day Average?
Technically, the DAX is currently trading directly at the 100-day moving average, which can be seen as significant resistance. The index must definitely mark a clear closing price above the 100-day line to soften the bearish environment.
If this technical breakout succeeds, the path towards 24,500 points is open. Otherwise, there is a risk of bouncing back downwards. Today's market opening will provide insight into whether the bulls have enough strength for this decisive attack.
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