The DAX 40 is losing momentum after its recovery rally stalled near last week's 25,800 high, with chart analysis pointing to a possible break below the March-to-September uptrend line. A slip through the mid-September low at 25,173 would open the door to deeper losses toward the June-July region.
Rally stalls below the record high
The DAX 40 has fallen from its late-August record high of 26,618 to a mid-September low of 25,173, then staged a recovery that ran out of steam at last week's 25,800 peak. Technical analysts now see a break through the March-to-September uptrend line at 25,352 as a likely next move.
A move back below the September low at 25,173 could bring the June-to-July lows at 24,697-to-24,548 into view as the next downside support level. Yet a bullish reversal would need to clear the recent 25,800 high before the July peak at 25,900 comes back into range.
Outlook stays cautious near-term
Analysts call the short-term outlook neutral with a bearish undertone, a stance that holds only while the index stays above the 15 September low of 25,173 on a daily closing basis. A break through that level would turn the short-term call outright bearish.
Meanwhile, the medium-term view is also neutral, but the same 25,173 threshold marks the line that would flip it toward bearish.
Wider market backdrop
Elsewhere in markets, Japan's 10-year government bond yield surged 10 basis points to 3.075%, its highest since August 1996, following a sell-off in US Treasuries. Separately, Washington and Beijing agreed to extend their tariff truce by two months during a three-day summit between President Trump and Xi Jinping, though the deal fell short of the one-year extension markets had hoped for.
Source: IG – News and trade ideas
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