DAX Technical Analysis: The German stock market touches a new all-time high, breakout eyed

DAX Hits All-Time High

The DAX reached a new all-time high, but failed to break out of the 2025 range. Initial optimism stemming from German fiscal stimulus faded, leaving the index hovering within a broad range. The German central bank anticipates a gradual economic recovery in 2026, but risks from the ECB could loom, especially if rate hikes occur earlier than expected.

Technical Analysis: Daily Chart

On the daily chart, DAX attempted to breach the upper resistance but struggled to maintain its gains, indicating potential selling pressure that may drive it back to the lower boundaries of the range. Meanwhile, bullish traders look for higher breakouts to test new all-time highs.

Technical Analysis: 4-Hour Chart

The 4-hour chart reveals an upward trendline showcasing a bullish momentum. A pullback towards the trendline could provide buying opportunities, while sellers may consider shorting if the line is breached.

Technical Analysis: 1-Hour Chart

On the hourly chart, a minor trendline revealed persistent bullish momentum. Buyers might split their orders near this minor line, while sellers remain active with every descent aiming for the lower bound of the range.

Upcoming Economic Catalysts

Several important economic indicators are on the horizon, including US ISM Manufacturing PMI, inflation reports from major European economies, and Eurozone Flash CPI, all of which could impact market movements.