Current Market Situation
- DAX Development: The DAX closed the month of May 2025 at 23,997.48 points, representing an increase of about 1,500 points compared to the end of 2024. Despite this positive development, the index has shown a downward momentum in recent days, which could be attributed to the recent geopolitical tensions.
- Technical Analysis: The DAX is in an overarching uptrend; however, a technical pullback occurred after reaching a peak on June 5. This led to a decline below the lower Bollinger Band, signaling an oversold condition. The buy signals from the moving averages (MA 50 and MA 200) remain intact, suggesting a possible continuation of the trend.
- Support Level: An important lever for the DAX lies around 8.10, and the long scenario becomes void if the index fails to sustain above the support at 23,271 points.
Impact of Geopolitical Events
Geopolitical tensions, such as the recent Israeli attack on Iran, can have significant effects on financial markets. These events increase uncertainty and often lead to a decline in stock prices as investors become risk-averse and move away from riskier assets. Additionally, such conflicts can lead to a deterioration of the global economic situation, which in turn can affect the demand for oil and other commodities.
Forecasts and Expectations
In the coming days, the DAX could remain volatile due to the recent geopolitical tensions. However, the technical analysis indicates a possible recovery, especially if the index uses the lower Bollinger Band as support. Statistically, there is a probability of about 62% that the DAX will increase by approximately 2% in the next 10 trading days after marking a new low.