Wednesday 23rd April

The daily chart for the DAX index shows a bullish longer-term bias, with the price recently bouncing off key support at 18,018, which is aligned with the 200-day moving average (green line). The price has made a strong recovery, trading above both the 50-day (blue line) and 14-day (purple line) moving averages, which suggests a positive short-term and long-term trend. The Stochastic Momentum Indicator (SMI) is currently in the bullish zone, confirming the upward momentum. Immediate resistance is at 20,098, followed by 21,006. The next target lies near 22,236, where the price could face additional resistance. On the downside, support levels are seen at 19,676 and 18,575. A stop loss could be placed just below 18,575 to protect against any unexpected reversal.

The 4-hour chart shows a neutral short-term outlook as the price has recently experienced a pullback after testing resistance around 20,098. The price is currently consolidating above the 50-period (blue line) and 200-period (green line) moving averages, which are both providing dynamic support. The Stochastic Momentum Indicator (SMI) shows some potential bullish momentum, but it is moving sideways, indicating indecision in the short term. Immediate resistance is at 20,098, with the next level at 21,006. On the downside, support is at 19,676, and further downside potential exists near 18,575. Traders should be cautious for a breakout in either direction. A stop loss could be placed below 19,676 to manage downside risk.

Tuesday 22nd April

The daily chart for the DAX reveals a neutral longer-term bias, transitioning from a sharp bearish correction in early April to a tentative recovery. The recent rebound found footing just above a key horizontal support at 18,018, corresponding with previous August swing highs. The price has now climbed back above the 200-day SMA at 20,078, which has resumed its role as a dynamic support. However, the index remains below the 50-day SMA at 22,232, which continues to act as near-term resistance. The short-term moving average (SMA 14) has flattened, reflecting a stalling in momentum. The Stochastic Momentum Index shows a recovery from oversold territory, but without a clear bullish divergence—suggesting momentum is rebuilding, though not decisively. Until a break above 21,032, the previous consolidation zone, the outlook remains cautious. Should price reclaim that zone, a move toward 22,232 (50-day SMA) is possible. A rejection from current levels could open a path back toward 19,676. Traders seeking long positions should set stops below 19,676 to protect against another breakdown.

On the 4-hour timeframe, the DAX presents a bearish short-term outlook, as price struggles below the declining 200-period SMA at 22,124 and remains capped by the 50-period SMA at 20,772. After rebounding sharply from 18,018, the index appears to be losing steam around 21,176, with momentum waning as evidenced by the Stochastic Momentum Index rolling over from near mid-range levels, now reading -8.39%. This failure to push decisively above 21,176, combined with lower highs forming over recent sessions, suggests a bear flag pattern may be in development. The key downside level is 19,676, which aligns with both horizontal support and the upper band of the April reversal zone. If that level breaks, price could retrace toward 18,969 and 18,575. The moving average structure confirms the pressure remains to the downside. A stop loss for short positions should be set just above the recent swing high at 21,200 to allow for minor volatility while staying within the downtrend structure.

Thursday 17th April

The daily chart of the DAX shows a neutral bias following a sharp correction from the highs near 23,000. After plunging to a low around 18,000, the index rebounded off the 200-day SMA at 20,085, which is now acting as dynamic support. Price has reclaimed the 14-day SMA (21,121), though the 50-day SMA (22,247) is still trending downward, suggesting the rebound is not yet confirmed as a trend reversal. The Stochastic Momentum Index has turned higher from oversold territory and currently sits at 38.89%, indicating some upward momentum, but the bounce remains vulnerable unless it breaks above the key resistance at 22,247. Notably, there was a bullish divergence between price and the Stochastic indicator around the April low—price made a lower low while momentum made a higher low—hinting at exhaustion in the previous downtrend. For the upside to resume, the index must clear resistance at 21,121 and then 22,247, with a target toward 23,000. On the downside, failure to hold above 20,085 could lead to a retest of 18,969, with a protective stop loss recommended below 19,675 for long positions.

The 4-hour chart reflects a neutral short-term outlook as the DAX stabilises following its recent sharp rebound. Price has recovered above the 14-period SMA (21,124) and 50-period SMA (20,607), forming a short-term consolidation pattern just below resistance. However, the 200-period SMA (22,171) continues to slope downward and looms above current price levels, limiting immediate bullish momentum. The Stochastic Momentum Index has pulled back from near-overbought territory and is now turning flat around 10.5%, reflecting a loss in short-term momentum. While price is forming higher lows since the April bottom, there’s no clear follow-through above key resistance at 21,125, suggesting the bulls lack conviction. A breakout above 21,125 could see the index push toward 22,171, while support lies at 20,607 and 19,676 below that. A stop loss for tactical long trades could be placed below 20,607, while short-term traders may consider fading rallies into the 21,100–21,200 region until a clearer directional breakout emerges.