The DAX has broken below short-term support after forming a bearish divergence between price and the Stochastic Momentum Index, confirming waning bullish momentum. Price had been trending along an ascending wedge, making marginal new highs, but the Stochastic Momentum Index, now at -40.30%, consistently made lower highs over the past several months — a classic signal of bearish divergence. The index is now pulling back from the upper boundary of the wedge and is trading below the 14-day SMA (24,033) and testing the 50-day SMA (22,887). If this area fails to hold, the next significant support is the 200-day SMA at 21,065, which aligns with horizontal structure support near 21,000–20,676. Despite the longer-term trend still being upward, the weakening momentum and break from rising wedge structure shift the bias to neutral with a downside tilt unless the index quickly reclaims 24,033. A confirmed move below 22,887 would open further downside toward 21,065, while a stop loss for long positions should be placed below 21,000.

The DAX remains in a longer-term uptrend, but recent price action has stalled beneath the resistance trendline extending from the March high, currently near 24,088. Price is consolidating in a narrowing wedge just above the 14-day SMA and the 50-day SMA, while the 200-day SMA at 21,042 continues to rise beneath. Despite price maintaining higher levels, a clear bearish divergence is visible on the Stochastic Momentum Index — with price forming higher highs, while the SMI has printed lower highs and is now turning sharply lower at -20.51%. This divergence warns of potential exhaustion in bullish momentum. Immediate support lies at 23,683, followed by 22,872 (50-day SMA), and a break below these could trigger a deeper pullback toward 21,042. A decisive break above 24,088 would invalidate the bearish divergence and suggest continuation. Long trades should consider stop-losses just below 22,850 to manage breakdown risk.

The DAX has been trading in a steady uptrend since November, but recent price action suggests a potential loss of momentum. The price is currently hovering near the recent highs at 24,081.90, but has begun to roll over slightly with lower daily closes. The 14-day simple moving average (SMA) remains above the 50-day (US$22,844.21), which in turn remains above the 200-day SMA (US$21,017.54), preserving a bullish structure. However, the Stochastic Momentum Index has turned sharply lower from overbought territory, now down to just 5.51%, indicating weakening upward momentum and raising caution for a possible pullback. No clear bullish divergence is observed, which suggests the index could correct lower before attempting a new leg higher. Key support lies at 23,000, a psychological and structural level, followed by 22,844 at the 50-day SMA. A decisive break below that level could open the way toward 21,000 near the 200-day SMA. Resistance remains at the recent high of 24,081.90, followed by a potential breakout target around 24,500. Long positions should consider stops beneath 22,800 to manage downside risk in case of trend reversal.

The daily chart retains a bullish longer-term bias, with price action steadily advancing along the upper Bollinger and trending above all major moving averages. The 50-day (pink) and 200-day (green) moving averages are in a bullish configuration, both sloping upward and reinforcing the trend’s strength. Recent candles show reduced volatility with tight-bodied closes, suggesting consolidation near the highs around 24,097.78. While price action continues to print higher highs, the Stochastic Momentum Index (SMI) is diverging to the downside, currently falling to 28.90%, indicating weakening momentum. This negative divergence could signal the possibility of a short-term correction or pause before any further rally. Key resistance remains at 24,097.78, with a break above that level targeting the psychological 25,000 area. On the downside, initial support lies at 22,816.75, followed by stronger structural support at the 200-day moving average around 20,991.49. Traders positioned long should consider placing a stop-loss just below 22,816 to safeguard gains in case of a breakdown from the current consolidation range.