Nvidia Effect Fizzles Out: DAX Under Threat of Deep Fall – Hard Landing Below 23,000 Points?
The technically risky situation has been confirmed: the short-lived sigh of relief in the DAX and US markets following Nvidia's top earnings was short-lived on Thursday. The DAX struggled throughout the day to sustainably break above key levels like 23,400 or 23,500. Although the closing price of the leading index was slightly positive at 23,278.85 points (+0.5%), the DAX had already surrendered more than 200 points of its intraday performance by then.
Strong Jobs Report Becomes a Boomerang: Rate Cut Hopes Fade
The release of the better-than-expected US labor market data in the afternoon acted as a clear negative impulse, triggering a wave of selling in the US stock market. The strong jobs report further dampens hopes for an imminent rate cut by the Federal Reserve. Even Nvidia stock, which surged 5 percent after the results were announced, was heavily sold off later in the trading day, falling back significantly below the previous day's low.
Siemens Energy and RWE Defy the Pull – New Momentum at Qiagen?
Despite the general weakness, shares of Qiagen, Siemens Energy, and RWE were convincing in the DAX on Thursday. The latter two proved once again that their existing uptrends remain intact. Over a 3-month period, RWE (+26% gain) and Siemens Energy (+20% gain) are among the absolute top stocks in the index. While Qiagen failed to generate returns in recent months, its recent surge suggests that this could change under a new CEO.
Code Red: DAX Caught in Correction Vortex – Slide to 22,200 Possible
The technical outlook is grim. The DAX came under heavy pressure in after-hours trading and is now trading back at critical resistance. If this level cannot be held, it risks starting a deeper correction. The next lower weekly closing levels lie at 22,800 points and one level further down at 22,200 points. The alarming fact: Currently, there is no technical sign of a base formation whatsoever. Investors must prepare for a potential expansion of losses.
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.