The DAX, the most important German stock index, has experienced significant fluctuations in recent months. In February 2025, the index surpassed the 22,000-point mark for the first time, but experienced severe drops in March and April 2025. At the beginning of April 2025, the DAX fell by about 11.75%, but was able to partially recover.
Current Price Development and Forecasts
- Current Price: The DAX stood at around 20,000 points at the beginning of April 2025 after recovering from a low of about 18,500 points.
- Forecast for 2025: The expected price range for the DAX in 2025 is between 17,478.18 and 18,299.02 USD, indicating moderate fluctuations with predominantly positive trends.
- Long-term Trend: Despite short-term corrections, steady growth is expected, with the index possibly experiencing significant rises in November and December 2025.
Importance of SMA20 for Investors
The Simple Moving Average (SMA) over 20 days is an important indicator for investors to assess the short-term price development of an index or stock. If the DAX can hold above the SMA20, it indicates a stable support line that could strengthen investor confidence. However, a break below this mark could indicate a negative price development.
Factors Influencing Market Development
- Geopolitical Tensions: Ongoing trade conflicts between the USA and China as well as unpredictable actions by the US government contribute to market fluctuations.
- Economic Developments: The German economy could be strengthened by increased investments in defense and infrastructure, which could have positive effects on the DAX.
- Market Volatility: Volatility remains high, forcing investors to continuously adjust their strategies.
Outlook
Despite the current challenges, there are signs of a potential recovery of the DAX. However, investors should remain cautious and keep an eye on geopolitical developments as well as economic forecasts. The ability of the DAX to stay above the SMA20 will be an important factor for short-term price development.