DAX Technical Analysis - July 14, 2025

Overview

The DAX index is currently undergoing a bearish correction, characterized by a flag pattern formed by black trendlines. This pattern follows a previous downward movement, indicating that the overall market sentiment remains bearish for the time being.

Recent Developments

Last week, the DAX broke below a significant support level at the 24,200 zone, which has now become a critical resistance point. This breach has intensified the downward pressure on the index. Additionally, the price has fallen below a previously established blue uptrend line, further contributing to the bearish outlook.

Current Market Action

As the new week begins, the DAX is attempting a comeback, pressing against the upper boundary of the bearish flag. This movement suggests a potential breakout; however, several key resistance levels must be overcome for a bullish reversal to be confirmed.

Resistance Levels

The DAX is currently facing a triple resistance zone, which includes:

• The upper black line of the flag pattern
• The blue uptrend line, which has transitioned from support to resistance
• The yellow horizontal level at 24,200, which is the most critical resistance

A clear breakout above the yellow horizontal resistance at 24,200 would signal a long-term buy opportunity and shift market sentiment back in favor of bullish traders.

Conclusion

Until the DAX can break above these resistance levels, the market remains fragile. The sentiment is currently negative, with sellers still in control. Traders should monitor these resistance points closely for any signs of a potential bullish reversal.