DAX 40 run out of gas?

Today on Memorial Day, the US market will remain closed today. The ECB has focused on cutting interest rates trying to get ahead of its peers in the US and UK. European stocks have started slightly higher from Friday's close. Sentiment continued part of the day up 0.28% at around 18,745 points. Data from the Ifo institute on current conditions were slightly below expectations, with a score of 88.3 compared to the consensus of 89.8 and lower than the previous 88.9, so it is possible to see the currency turning bearish against the dollar. As for expectations, they have not been met either, although they were slightly more optimistic, closing at 90.4 compared to 89.7 in the previous publication. As we have said, this will also affect the Euro. And finally, the publication of the German business climate, has also been clearly bad, showing the same data as the previous publication of 89.3 against the expected 90.4. This indicates a possible pessimistic sentiment regarding the market situation.

If we focus on the chart, the DAX (Ticker AT: GER40) has been retracing its price touching highs in the middle of the month. A possible bullish pullback above the previous bullish breakout zone is currently being structured. The moment the 18,913.82 points (current high price) is surpassed, we will be looking at another possible "All-Time-High" (ATH) milestone. Currently the RSI indicator is not telling us much with a slightly overbought 61.09%, and the bell shape being dual. At the moment, there is a lot of pressure on two possible strong price zones: 16,721 points and 18,532 points. It is creating a possible third bell with low volume at the moment, in the area of 18,729 points. In order to continue at the highs, 405.75 points (2.19%) must be surpassed. It will be more likely to see a correction after testing the highs than a continuation of the success.

Ion Jauregui - AT analyst



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