Dax Forecast Today 23/04: Slams Into Resistance Level -Chart

2025-04-23 02:29:16

(MENAFN- Daily Forex)

During the trading session on Tuesday, the German DAX gapped lower to kick off the trading session, only to turn around and raced toward the upside.
With particular interesting is that the previous candlestick was a shooting star, so to produce a bit of an engulfing candlestick is very strong sign.
That being said though, there is a significant amount of resistance at the €21,500 level, as it has been important more than once.
If we were to break above there, then the market is likely to go looking to the 50 Day EMA, which is closer to the €21,700 level.

Technical Analysis

The technical analysis for this market is obviously a bit mixed as of late, but that's not a huge surprise considering everything that is going on around the world. The DAX is currently trading between the 50 Day EMA above, and the 200 Day EMA below. Because of this, we typically see a lot of volatility, and of course it's worth noting that the volatility is going to continue to be a major issue even without technical analysis. Trade tariffs and of course the noise will continue to see markets jump around quite drastically.

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All things being equal, this is a market that is going to benefit from the idea of Germany exiting a recession, however with all of the trade tariffs talk between the European Union in the United States, that situation could change rather rapidly. While Germany has outperformed most other indices as of late, there is a“knock on effect” when everything else is selling off. Because of this, I'm not overly bullish on the DAX, at least in the short term. Longer-term, I do think that the DAX does quite well, but we have so much nonsense to deal with between now and that day, that I think you need to understand that it is a short-term trading environment right now. It does lean to the upside, but as we are threatening a major resistance barrier, it might be difficult in the next 24 hours.

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