European Comeback: Market Analysis

Date: 26 May 2026

Overview

The European indices are showing a significant recovery, aligning closely with the performance of their American and Japanese counterparts. Notably, the Euro Stoxx 50 and the DAX are both hovering just below their early 2026 highs, indicating a strong market sentiment and potential for further gains.

DAX Performance

In our previous analysis, we highlighted the importance of closing the Open Gap in the DAX index. This gap was crucial for the index's trajectory towards achieving new all-time highs (ATHs). As of now, the DAX is testing the critical resistance level of €25,641 from the upside, and it appears to be finding support in this area.

Technical Analysis

On the daily timeframe, the DAX has shown a robust upward movement, confirming our expectations. The current analysis suggests that the index is likely to find support within the range of €24,983 to €25,325. If this support holds, we can anticipate a further upward movement, potentially leading to new highs.

Future Expectations

Looking ahead, the market sentiment remains optimistic. Traders are advised to monitor the support levels closely, as a bounce from the identified zone could pave the way for a bullish trend in the DAX. The overall outlook for European indices remains positive as they continue to recover and align with global market trends.