DAX in the upswing: relaxation up to the 18,345-point brand on August 19th

DAX in the upswing: relaxation up to the 18,345-point brand on August 19th

The Dax, Germany's most important stock market indices, recovered after a turbulent beginning in August 2024. After a strong decline from August 1st to 5th, when the index fell to a low of 17,024 points, it was able to gain a lot of value until August 16 and reached a daily high of 18,345 points. This dramatic turn shows how much trust in the market has returned, which was supported by several purchase signals.

In view of this recreation, investors seem to look optimistically at the upcoming trade strategies. A crucial point is the first level of resistance at 18,345 points; Breaking this level could lead to further purchases. This positive development is not only due to a general market upturn, but is also supported by some technical indicators. The slow stochastics, along with the sliding average (GD 20, GD 50 and GD 200), clearly shows that the index increases in an overbought area over the previous low.

purchase signals and other options

For the coming days, the expectation is that the Dax will retain its upward movement. Statistically speaking, there is a probability of 63% that a rally of 2% or more can be expected in the next ten trading days. These figures come from historical analyzes that have been carried out since 2000.

A sustainable outbreak over the 18,345 points could even pave the way for an increase to the local maximum of 18,563 points. However, investors have to remain vigilant: the long scenario would invalidate a decline under the support of 17,907 points. There could be a first sales signal here.

Investors who want to participate on the DAX have the option of investing in various derivative products, e.g. the endless Turbo Long 15,817 Open End from DZ Bank with a base price of 15,817 points. The current lever is around 7.28, which makes this trade approach particularly dynamic.

Nevertheless, investors should also keep an eye on the risks. In the event of a possible reversal between the resistance levels, there is a risk of a new wave of sales, especially if the 18,198 points are undercut, because this could start a sales dynamics. Historical data also indicate that there is a 43%probability of decline in the courses in the following ten days.

If the DAX actually does not hold these decisive brands, analysts fear that we could enter into a correction phase. Conversely, a stable upward trend that continues to raise the index could bring great profits for investors.

Financial opportunities and risks

In this market environment, investors find numerous options, but also considerable risks. Trading requires a certain level of specialist knowledge, especially when it comes to choosing the right products. For example, everyone who invests in the DAX should carefully read the specialized basic brochures and understand the financial instruments before making a decision.

An example of a short approach is the endless Turbo Short 20,706 Open End from DZ Bank, in which the lever is currently 7.70. Such an approach could be interesting if the DAX increases the 18,563 points. The consideration is that different scenarios are possible in both long and short trading, which can result in both high returns and significant losses.

Observers of the financial markets are excited to see how the DAX reacts to the upcoming index impulses of the US economy. These impulses could be crucial for the further development and direction that the market will take. The central question remains whether the DAX can regain stability and whether the support lines are strong enough to prevent larger downward movements.

investors should therefore not only rely on short -term price gains, but also pay attention to long -term market development and keep an eye on the fundamental values.

The changes in the global economic environment have shown significant effects on the financial markets in recent months. An example of this is the influence of geopolitical tensions and inflation on the DAX. The burdens due to increasing energy costs and raw material prices have a direct impact on the affected companies, which is reflected in the performance of the index. According to an analysis of dz bank , the DAX often shows greater volatility in times of increased inflation tendencies, since investors are more careful when making their investment decisions.

Economic framework and their effects

The current economic situation in Germany is characterized by various factors that provide important information about the development of the DAX. For example, the Statistics for Germany recorded an increase in consumer prices. This price pressure has influenced both the purchasing power of households and the willingness to invest of companies. The European Central Bank (ECB) reacted to these developments by reconsidering interest rate policy, which triggered different reactions on the financial markets.

In addition, the global supply chains have suffered under pressure from the Covid 19 pandemic and the subsequent economic upswing. Significant delays and increasing costs for services have contributed to uncertainty. However, such economic framework conditions differ from past crises, such as the 2008 financial crisis, in which the effects on the DAX trigger explosive price movements that were triggered by the sudden decline in demand. On the other hand, some companies are currently becoming more resistant, which is partly due to the adaptability and innovative strength of German industry.

Market developments in the historical context

The current market developments are not the first time that the DAX acts in an uncertain economic environment. A concise example is the Dotcom bubble around the turn of the millennium. Similar to today, when technology shares experienced enormous growth, many companies in the DAX experienced enormous price gains during the bubble. However, the difference lies in the sustainability of these growth rates. While the Dotcom bubble finally bursts, increased investments in renewable energies and digitization today try to diversify the economic basis.

In the last decade, the DAX has proven to be a resilient. Despite continuing geopolitical uncertainty, the index remains robust among the leading European indices, which is partly to be explained by the diversification of the listed companies. The supposed differences between current and historical developments could be indicators of future movements, although every economic cycle has its specific characteristics.