Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Technical Analyst, Saxo Bank
Summary: DAX/GER40 finding support at 15,246/15,240 which could prove to be pivotal for a correction or extended uptrend. Strong indications of a correction but the trigger has not yet materialised
DAX: 15,246 seems to be a key support for DAX . 15,240 on the GER40 cfd. Now having bounced twice from the 15,246/15,240 level they have traded sideways out of the rising wedge like pattern (Blue rising tend lines) with 15,658 as the peak.
If closing below 15,246/15,240 next support at 14.906
Those are the levels to look out for short-term.
As mentioned repeatedly the uptrends in European markets are stretched and a correction should be expected. RSI showing divergence supporting that scenario but the igniting catalyst has not yet occurred.
A close below the 15,246/15,240 is likely to be just that.
However, if buyers can manage to lift the DAX/GER40 above 15,658/15,656 the uptrend could get renewed energy and be extended.
Minor resistance at around 15,736 before all-time highs at 16,290.
Weekly chart on the DAX has formed a rising wedge like pattern and with the divergence on the weekly RSI there are indications of a correction. But the confirmation of it unfolding has not yet materialized. A close below 15,240 could be just that.