The daily chart shows a neutral longer-term bias. The DAX at 25,309 sits between its moving averages, with conflicting signals on either side. Overhead, price is below the 14-day average (red) at 25,402 and the 50-day (yellow) at 25,851. The 50-day has flattened after months of rising, which means the medium-term uptrend that carried the index from the March low near 21,900 to the August–September peaks around 26,550 has stalled. Those twin August highs formed a double top, and the September breakdown below the 50-day average confirmed a corrective phase. Below price, though, the 200-day average (green) at 24,852 is still rising, and the early-October sell-off reversed right above it, leaving a long lower wick near 24,900. A rising 200-day that holds on a first test usually marks the line between a correction and a trend change. Here buyers defended it, so the long-term uptrend remains intact. The 25,300–25,500 zone is also important historically: it capped rallies in January, February and May before the July breakout, so price is now fighting to hold former resistance as support. Immediate resistance is the 14-day average at 25,400, then the 50-day at 25,850, which also matches the mid-September rebound highs. Support is at the 200-day average at 24,850, followed by 24,600, the base of the July consolidation. The Stochastic Momentum Index (SMI) is giving the most constructive signal on this chart. In mid-September, price fell to around 25,100 while the SMI reached deep oversold near -75. In early October, price made a lower low near 24,900, but the SMI bottomed far higher, around -45. That is a classic bullish divergence: sellers pushed price lower with much less momentum, which suggests the decline is running out of force. The SMI fast line at -30.15 has also crossed above the signal line at -37.41 and is climbing out of oversold territory, confirming the turn. This divergence tilts the neutral bias toward the upside. Traders can look for a daily close above 25,400 to confirm a buy, targeting 25,850 and then the 26,000 round number, with a stop loss below 24,750, beneath the 200-day average and the early-October reversal low. A daily close below 24,750 would cancel the divergence and expose 24,600 and potentially 24,000.

                                                            Daily Chart: Longer-Term Bias: Neutral

The daily chart shows the DAX at a key point where its trend could either resume or break down. The index peaked in a double top near 26,550–26,600 in August. A double top is a reversal pattern in which two failed attempts at the same high show buyers’ exhaustion. It is confirmed when price breaks the intervening low, the neckline, which here sat near 25,950. That breakdown came in early September. The pattern’s measured objective is the height of the top (about 650 points) subtracted from the neckline, which gives roughly 25,300. That target has already been met, and price then traded sideways between 25,250 and 25,700 for most of September. The index has now slipped below that range to 24,951. It trades beneath the 14-day moving average (red line) at 25,389 and the 50-day (yellow line) at 25,848, both of which now act as overhead resistance. It sits only about 100 points above the 200-day (green line) at 24,845. The 200-day is the most widely watched gauge of the long-term trend, and it is still rising. The 50-day also remains above it, so the longer-term uptrend from the April low near 21,900 is technically intact. However, the 50-day has flattened and price is testing the 200-day directly, which makes the next few sessions decisive. The Stochastic Momentum Index (SMI) measures where the close sits relative to the midpoint of the recent high-low range, and readings below -40 indicate oversold conditions. It reads -61.58, below its signal line at -53.69, after rolling over from a brief recovery toward -40. That bearish crossover reflects renewed selling pressure. At the same time, price has made a lower low beneath the mid-September trough near 25,250, while the SMI remains above its mid-September low near -75. That is a developing bullish divergence: momentum is not confirming the new price low, which suggests the decline is losing force just as it reaches major support. Together, the falling short-term momentum and the supportive divergence at the 200-day justify a neutral stance. A daily close below 24,845 would turn the bias bearish, targeting the late-July lows at 24,600 and then the June low near 24,000. Traders shorting that breakdown should place a stop above 25,400. If the 200-day holds and the SMI crosses back above its signal line, that would confirm the divergence and support a rebound toward 25,390 and then 25,850. Longs taken at support should use a stop below 24,700.