DAX Rally Likely to Continue as Trading Week Begins: Here's What to Expect
Focus shifts to DAX forecast: Bulls gain momentum towards 18,000 points, with reporting season and ECB interest rate decision looming large.
The German stock market is set to see further growth as we kick off a new trading week, with the DAX edging closer to the 18,000 point mark. Here's what you need to know.
Since the start of the year, the DAX has witnessed a significant surge, gaining around six percent. Last month alone, the stock market barometer rose by over four and a half percent. In the last trading week, the DAX climbed by 1.8 percent to 17,735 points, placing it just 265 points away from the psychologically significant 18,000 point mark.
It seems that the rally isn't slowing down anytime soon. In fact, the DAX set new highs on each of the last eight trading days, making this the longest record streak since 2015.
The earnings season is in full swing, and the stage is set for some key announcements. For example, Bayer will present its financial report on Tuesday, while DHL Group and Symrise will follow with their figures on Wednesday. Thursday will see Merck, Brenntag, and Continental reveal their books.
Companies like Lufthansa, Gea, and Hugo Boss from the MDAX, and Traton, Schaeffler, and Draegerwerke from the SDAX are also on investors' radar.
The Deutsche Börse is set to announce the results of its regular index review on Tuesday evening after the close of trading. It's expected that Morphosys and Vitesco could swap places in the MDAX and SDAX, respectively.
The European Central Bank (ECB) is also poised to make an impact with its interest rate decision on Thursday. While interest rate changes are not expected, ECB President Christine Lagarde's comments could potentially influence market sentiment.
Other factors such as the upcoming ECB interest rate decision, the ongoing earnings season, and geopolitical risks will influence the price developments in the coming days. Last week, the following articles were among the most read on our website:
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As the DAX continues to perform well, investors should remain aware of the potential risks and keep an eye on key support levels and technical indicators. Despite some signs of technical caution, the DAX remains among the top performers in 2025, reflecting a favorable market outlook.
Insights for Investors
While the DAX has been strong recently, it's important to note that technical indicators suggest some caution. The Relative Strength Index (RSI) has pulled back from overbought territory, and the MACD indicator signals weakening upward momentum. Therefore, it's crucial for investors to pay attention to key support levels and be prepared for potential corrections if the market moves in that direction.
Overall, the DAX’s rally continuation towards 18,000 points depends on various factors such as maintaining key support levels, favorable ECB monetary policy signals, resilient corporate earnings, and managing geopolitical risks. Technical indicators suggest some caution as momentum may be waning, and breaking below key supports could lead to corrections. Global economic data, especially U.S. payrolls, and broader market sentiment will also play pivotal roles in shaping the next phase of the DAX rally.
- Given the strong performance of the DAX, investors should be mindful of potential risks and monitor key support levels, as the RSI has pulled back from overbought territory and the MACD indicator signals weakening upward momentum.
- As the DAX rallies towards the 18,000 point mark, the continuation of this trend depends on factors such as maintaining key support levels, favorable signals from the ECB, resilient corporate earnings, and managing geopolitical risks. Technical indicators suggest some caution, as momentum may be waning, and breaking below key supports could lead to corrections.
