Recovery Choked Off! DAX Buckles Again—Is That It for the Bulls?
It happened exactly as the warning signs had dangerously suggested: the recent recovery rally simply lacked intrinsic strength. After three friendly trading days, buyers promptly ran out of steam yesterday, Thursday, and the German leading index had to swallow a bitter setback. Have we already seen the high of this turbulent trading week on Wednesday, or can the bulls pull another ace out of their sleeves today, Friday?
The answer to this does not lie in Frankfurt, but rather in the diplomatic wrestling between the U.S. and Iran. Will the warring parties now outbid each other at the negotiating table with unacceptable demands, dragging the conflict out even further? The trading floor will orient itself exactly on these geopolitical pinpricks, as they provide the ultimate fuel for upcoming investment decisions.
SAP Sends an SOS, Rheinmetall Faces the Ultimate Chart Showdown
Thursday left deep skid marks on the pricing board: the DAX slid by 1.5% and closed the session at 22,612.97 points. Ironically, it was the recently battered SAP share that secured the daily victory with a gain of 0.9%. But beware: this is nothing more than a tiny glimmer of hope. The software giant's downtrend remains brutal, and a genuine bottoming out is still miles away.
The situation with Rheinmetall is far more exciting. Although the defense contractor lost 0.8%, it is heading straight for a massive technical support level. The bastion at around €1,409 (dating back to November 25, 2025) faces a classic retest today. If this mark can withstand the selling pressure, the stock could be primed for a lucrative, short-term impulse.
Day of Decision: Will the Low Hold or Will the DAX Collapse?
Technically, the DAX experienced a textbook down day on Thursday—characterized by a lower high and a lower low. The marching orders for today, Friday, are therefore crystal clear: if yesterday's low can be defended as solid support, the bulls have a realistic chance for a conciliatory end to the week. In this scenario, Wednesday's prominent high becomes the ultimate litmus test. If it gets cracked, the upward correction can extend further. However, if Thursday's low falls, the next painful slide to the south threatens abruptly.
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