The DAX daily structure shows price consolidating just below the recent swing high at 23,968 after an extended rally from the April low. However, a notable bearish divergence has emerged, with price printing higher highs while the Stochastic Momentum Index has been making lower highs since May, now sitting at 22.28%. This divergence suggests waning upside momentum despite price holding above both the 50-day SMA (23,968) and the 200-day SMA (22,080). The slope of the 50-day remains upward, but flattening, hinting at potential trend fatigue. A sustained break below the 50-day SMA would shift bias toward a deeper correction toward 22,080, with further downside risk to 21,400 if selling accelerates. Bulls will need to see a decisive daily close above 23,968 to invalidate the divergence and open the path toward 24,200. Given the weakening momentum, protective stops for long positions should be kept tight, just under 22,900.

On the 4-hour chart, the DAX is attempting to recover after a brief dip but remains within a lower-highs formation since late July. Price is currently testing the 14-period SMA and sits above both the 50-period SMA and the 200-period SMA (24,081). While this short-term reclaim of moving averages hints at intraday strength, the SMI at 17.01% remains suppressed and is also showing a persistent bearish divergence against the late-July price peak. Immediate resistance lies at 24,081, with a break higher targeting 24,200, but momentum readings imply rallies may stall near these levels. Support rests at 23,700, with a deeper pullback toward 23,400 if this level fails. Short-term traders can consider fading rallies into 24,081–24,200 with stops above 24,250, unless the SMI confirms a momentum reversal with a sustained move above midline.

The DAX is displaying a neutral longer-term outlook as it continues to consolidate in a broad range just below its all-time highs. Price action remains elevated above the 200-day SMA (green) at 22,056, which maintains its upward slope and offers strong long-term support. Both the 14-day SMA (blue) and the 50-day SMA (pink) at 23,966 are trending sideways, reinforcing the ongoing consolidation. Despite holding elevated price levels, there is a clear bearish divergence developing between price and the Stochastic Momentum Index: while the price formed higher highs in June and July, the SMI formed lower highs and is now slumping to 6.35%, indicating waning bullish momentum and increasing risk of a downside correction. This divergence warns of potential exhaustion in the uptrend. Immediate resistance stands at 23,088, the recent high, with the next upside level at 23,300 should a breakout occur. On the downside, initial support lies at the 22,056 zone (200-day SMA), followed by 21,200 and the psychological level at 20,000. Given the divergence and flattening SMAs, traders should remain cautious and consider a tight stop below 22,000 for any long exposure, with potential downside risks increasing if momentum fails to recover.

On the 4-hour timeframe, the DAX shows signs of short-term recovery after bouncing off the 23,300 region and reclaiming the 200-period SMA (green) at 24,059. Price is currently trading above all key SMAs, with the 14-period SMA (blue) and 50-period SMA (pink) now beginning to slope upward, indicating the emergence of a short-term bullish structure. The stochastic momentum indicator, however, is still low at 28.49% despite the price rise—this discrepancy may reflect lingering bearish sentiment or suggest a bullish divergence if price continues higher and SMI begins to confirm. Immediate resistance is seen at 24,100, which capped the rally multiple times in July. A breakout above this level would open the way toward 24,400, near the recent swing high. Initial support lies at 23,800 followed by 23,500, a previous consolidation base. The short-term outlook remains cautiously bullish, but confirmation via momentum recovery is needed. Traders could consider upside exposure on a breakout above 24,100, with a stop loss below 23,650, protecting against a false breakout.