The DAX, Germany’s most important stock index, starts June a bit weaker after a solid rally in May. In May, the DAX managed to impress over long stretches, even exceeding the 24,000-point mark at times. However, at the beginning of June, there is a noticeable cooling: On June 1, the DAX closed at around 23,865 points, although it temporarily fell to around 23,740 points. Volatility has decreased, and there is uncertainty about whether the rally can continue or if a correction phase is approaching.
Impact on Investors
- Portfolio Development: After the rise in May, profit-taking could lead to pullbacks. Investors should be alert to potential fluctuations.
- Investment Decisions: The current market situation offers potential for tactical reallocations or investments in undervalued assets should a correction occur.
- Market Trends: Analysts expect a range between 23,280 and 24,090 points as the most likely movement of the DAX in the coming weeks. This range may vary depending on economic data and geopolitical events.
- Technical Indicators: The moving averages (MA20, MA50, MA200) continue to support an upward trend in the medium term.
Overall, the DAX is at a turning point at the beginning of June. After the strong gains in May, it remains unclear whether the momentum will persist or if a consolidation will set in. Both scenarios have direct implications for investors’ strategies.
Forecasts for the DAX
- Short-term: It is expected to have a fluctuation range between around 23,690 and 24,250 points; support at around 24,000 points is considered critical.
- Medium-term: Forecasts for the monthly value range from 22,941 to previous highs; by the end of the month, the value could stay just above/below.
“After its high above the mark of more than twenty-four thousand, the German stock index shows decreasing volatility… profit earnings could trigger a similarly massive wave of losses.”
Investors should remain vigilant, considering both the opportunities and risks of potential consolidation.
Conclusion: The DAX starts June slightly weaker after a strong May, prompting investors to rethink their strategies and react flexibly to potential price movements.