EU Open - DAX remains under pressure

DAX 40 struggles to break above 13,000 points

The DAX 40 index, which tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange, has been struggling to break above the 13,000-point mark in recent weeks. The index has been trading in a range between 12,800 and 13,200 points since mid-June, and has failed to make a decisive move in either direction. The DAX 40 is down by around 10% year-to-date, making it one of the worst-performing major stock indices in Europe.

There are a number of factors that are weighing on the DAX 40, including concerns about the global economy, the ongoing trade war between the United States and China, and the political uncertainty in Europe. The global economy is slowing down, and this is hurting demand for German exports. The trade war between the United States and China is also hurting German companies, as they rely on both countries for exports. The political uncertainty in Europe is also making investors nervous, as it is unclear what the future holds for the European Union.

Analysts are divided on the outlook for the DAX 40. Some analysts believe that the index is oversold and is due for a rebound, while others believe that the index could continue to fall in the short term. The DAX 40 is a volatile index, and it is difficult to predict its future direction with any certainty.

Key levels to watch

The DAX 40 is currently trading at around 12,900 points. The key levels to watch in the short term are 13,000 points and 12,800 points. A break above 13,000 points would be a bullish signal, while a break below 12,800 points would be a bearish signal.

Technical analysis

The DAX 40 is currently in a downtrend. The index is trading below its 50-day moving average and its 200-day moving average. The relative strength index (RSI) is also below 50, which indicates that the index is oversold. The moving average convergence divergence (MACD) is also below zero, which is another bearish signal.

Conclusion

The DAX 40 is currently struggling to break above the 13,000-point mark. There are a number of factors that are weighing on the index, including concerns about the global economy, the ongoing trade war between the United States and China, and the political uncertainty in Europe. Analysts are divided on the outlook for the DAX 40, but the index is currently in a downtrend and there are a number of bearish signals.