The DAX 40 edged slightly lower at 20,407.59 (-0.09%), following Wednesday’s strong performance that closed near record highs of 20,428.20 (+0.56%).
Key Points
- Rheinmetall, Adidas, and Puma led gains on U.S.-China trade optimism.
- Deutsche Post, Brenntag, and HeidelbergCement lagged amid eurozone growth concerns.
- Bearish technical patterns signal a potential DAX reversal near key resistance levels.
DAX 40 Daily Price Analysis – 12/12/2024
The DAX 40 traded slightly lower at 20,407.59, reflecting a -0.09% change from its previous close of 20,428.20, after opening at the same level today. This minor pullback follows Wednesday’s robust performance, where the index rose +0.56% to close near record highs of 20,428.20.
Among the top performers on the DAX 40, Rheinmetall saw a strong gain of +1.6%. Similarly, Adidas and Puma posted gains of +1.2% and +1.0%, respectively, benefiting from positive news out of China. The Chinese Commerce Ministry’s willingness to re-engage with the U.S. on trade talks has fueled hopes for improved economic conditions, particularly in sectors exposed to Chinese consumer demand, such as luxury goods and apparel.
On the downside, Deutsche Post declined -0.8%, reflecting sector-specific challenges, while Brenntag and HeidelbergCement lost -0.6% and -0.5%, respectively. These losses are indicative of mixed macroeconomic sentiment as investors weigh the impact of slowing eurozone growth and the uncertain pace of monetary easing. While broader market movements remain subdued, these stocks have shown sensitivity to the cautious tone dominating today’s trading environment.
Key Economic Data and News to Be Released Today
The highlight of the day is the European Central Bank’s (ECB) monetary policy decision, scheduled for 13:15 GMT. Markets widely anticipate a 25-basis-point rate cut, reflecting the central bank’s ongoing efforts to combat sluggish economic growth in the eurozone. The focus will be on the ECB’s forward guidance as investors look for hints about the pace of future rate reductions.
A dovish surprise, such as an indication of accelerated cuts, could buoy the DAX 40 and other European indices, while a more measured or hawkish tone might dampen sentiment.
DAX 40 Technical Analysis – 12/12/2024
Dax 40 is looking bearish today; we are anticipating a reversal from the higher timeframe. Looking at the price action, the RSI shows that the index is overbought and is ripe for a bearish reversal.
At the same time, the price reacts to a key resistance level while also forming a bearish head and shoulder pattern during the 4-hour timeframe. Now that we know our bias on the 4-hour timeframe, we are simply going to look for a corresponding bearish setup on the 15-minute timeframe to ride the downward move.
On the 15-minute, price is currently trending above the 200 EMA, indicating that market sentiment on the lower timeframe is still bullish. So, in order to enter a SELL trade, we can simply wait for the price to break below the bullish trendline and close below the EMA before going down.
Dax 40 Fibonacci Key Price Levels 12/12/2024
Short-term traders planning to trade the Dax index today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 20326.49 | 20439.57 |
| 20291.56 | 20474.50 |
| 20235.02 | 20531.04 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
