Market Analysis: DAX Eyes Bullish Recovery
By Zain Vawda | March 4, 2026
Market Overview
The DAX index is currently attempting a recovery after experiencing a significant 6% drop. This decline has been attributed to a global energy shock that has heightened concerns over stagflation, particularly highlighted by a record 12% drop in the South Korean KOSPI index.
Market performance is mixed, with technology and defense stocks providing some upward momentum. However, disappointing earnings reports from major companies like Adidas and Bayer are weighing down the index.
Current Market Sentiment
Recent comments from President Trump regarding potential US Navy escorts for oil tankers in the Strait of Hormuz have slightly boosted market sentiment. This strategic chokepoint is currently facing significant disruptions, impacting global energy flows.
Despite these diplomatic efforts, oil prices have surged by 14.5% this week, while European natural gas prices have skyrocketed by 60% due to the shutdown of Qatari LNG facilities and the closure of the Strait. The economic ramifications of these price spikes are being felt particularly in energy-dependent regions.
Impact on Global Markets
The DAX's 6% decline over the past two sessions mirrors the KOSPI's unprecedented 12% drop, reflecting a growing global anxiety over potential stagflation. The KOSPI's decline is particularly concerning as South Korea is heavily reliant on oil imports from the Middle East.
In just two days, the tech-heavy index has lost over 18% of its value, and the South Korean won has fallen to a 17-year low. The market's trajectory now depends on the duration of the ongoing conflict and whether energy prices will stabilize.
Technical Analysis of DAX
The DAX has fallen below the psychological level of 24000 for the first time since December 2025. However, buyers are returning as the index tests a descending channel it previously broke out of.
On the daily chart, the current candle is aiming to close above 24000, forming an inside bar hammer candle, which suggests a potential upward movement in the coming days.
For traders, the one-hour chart indicates that the price is caught between the 20 and 50-day moving averages. A retest of the 24000 level presents a favorable risk-to-reward opportunity for bullish traders. If this pullback does not occur, traders may look for a break above the 50-day MA at 24210, targeting the 100-day MA around 24700 and potentially 25000.