Bull Signal in the DAX: Index Overcomes Critical Hurdle – Full Speed Ahead to 23,900 Mark
The DAX took the initiative on Tuesday and attacked the important 23,500-point mark. Although the leading index closed slightly below this threshold at 23,464.63, the critical level was overcome in after-hours trading with strong tailwind from US exchanges. Investors appear to be aggressively utilizing the lower prices to boost their positions before the Christmas holidays. Consequently, the journey north is likely to continue today, Wednesday, and confidence in a recovery is growing.
Hope for Peace and US Strength: Europe on the Rise
European equity markets are receiving additional massive impetus from the justified hopes for peace in Ukraine. Diplomatic channels are running hot on all sides, and the revision of the initial US peace plan signals that constructive talks are taking place. Stock markets are reacting highly sensitively to this development.
Yesterday, Tuesday, Heidelberg Materials stock once again dominated the DAX list with a performance of 6.6 percent. Continental and Daimler Truck Holding also impressed with gains of 3.0 percent each. Heidelberg Materials is likely to benefit particularly from potential reconstruction efforts in Ukraine, fueling speculation about future large contracts—though that remains a secondary step.
Technical Breakout: DAX Heads for the 100-Day Resistance
Technically, the DAX achieved a significant breakout in after-hours trading: the index managed to overcome the resistance of last Thursday's intraday high, thus removing a technical stopper. This opens the technical door towards the next major target, the 100-day resistance, which is currently located around 23,900 points. Only minor resistances are expected on the way up until that point. Overcoming this mark is crucial for a sustainable end to the correction.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.