The DAX is testing support near EUR 25,743, where the SuperTrend indicator aligns with the 38.2% Fibonacci retracement. The index remains inside the Ichimoku cloud, which spans EUR 25,682.5 to EUR 25,885.25, while the technical outlook is divided between longer-term support and signs of short-term weakness.
The index is above its 50-day and 200-day simple moving averages, at EUR 25,687 and EUR 25,577 respectively. However, it is below the 20-day average at EUR 25,963. The MACD has formed a bearish cross, and the Relative Strength Index stands at 48.09, below the neutral 50 level. A hammer candlestick at EUR 25,744 on November 3 points to a possible rejection of lower prices, while the analysis identifies an active double top at EUR 26,246.
The immediate levels to watch are EUR 25,680 on the downside and EUR 25,963 on the upside. The technical assessment places a potential long zone between EUR 25,680 and EUR 25,745, and a short zone between EUR 25,930 and EUR 25,970. The area from EUR 25,745 to EUR 25,930 is described as a neutral range within the cloud.
A bearish scenario would gain support from a five-hour close below the 50-day average and the cloud, with EUR 25,430, EUR 25,250 and EUR 24,925 identified as successive downside targets. In the bullish scenario, a bounce from SuperTrend support or a five-hour close above the 20-day average could put EUR 26,100 and the double-top level at EUR 26,246 in focus, followed by EUR 26,500. Both scenarios are assigned medium confidence in the analysis.
Sources: Investing.com News.