Causes for the Current Market Development
- Geopolitical Uncertainty: The escalation of the Middle East conflict creates uncertainty among investors. Such events regularly lead to capital flight into safe havens and put pressure on risky asset classes such as stocks.
- Investor Nervousness: Short-term price declines reflect the fear of further unpredictable developments. This may manifest in increased volatility and heightened demand for hedging instruments.
- Technical Market Dynamics: Technically, the DAX is currently situated between support levels (e.g., 23,501 points) and resistances (e.g., 23,713 points). A break below key supports could trigger further losses.
Impact on Investment Strategies
- Short-term Reactions: Many investors reflexively respond to negative news with sales or reallocations into less volatile assets.
- Long-term Perspective: Despite short-term setbacks, the DAX is considerably in the positive when viewed over the year 2025 – by the end of May, it was around 1,500 points above the end of 2024. This indicates a fundamentally robust development.
- Strategic Considerations: Geopolitical risks require flexible portfolio management, for example through diversification or the use of hedging instruments.
Technical Analysis and Market Trends
| Indicator | Value/Zone | Meaning |
|---|---|---|
| Resistance 1 | 23,713 | First barrier for upward trend |
| Resistance 2 | 23,942 | Next hurdle |
| Support 1 | 23,501 | First defense line |
| Support 2 | 23,271 | Critical zone |
A break below the second support at around 23,271 points would question the current long scenario. Conversely, surpassing the first resistance could provide new momentum.
Conclusion
The sustainable development of the DAX remains positive when considering the medium- to long-term trend. However, in the short term, geopolitical risks such as the Middle East conflict lead to increased volatility and can influence investment strategies – particularly if they should result in a lasting loss of confidence. A flexible strategy that focuses on technical signals as well as diversification remains advisable to successfully navigate such phases.
“Technically, the recovery movement could extend today with the third consecutive green day.” — DZ Bank Securities on the current situation of the DAX
This statement shows: Despite brief setbacks, there remains potential for recovery – as long as no new negative shocks occur or technical levels are permanently breached.