The DAX 40 has broken below a support level near 26,082, extending its retreat from last week's record high and putting the early-July peak at 25,900 in sight. A daily close back above 26,293 is needed for buyers to regain control.
The DAX 40 slipped through a support level at 26,082, a floor that had held since 6 August. That break deepens the index's pullback from last week's record high at 26,573, and it now puts the early-July high at 25,900 in sight, an area expected to offer at least interim support.
Should that level fail to hold, the index may slide all the way to the May peak at 25,438. For bulls to regain control, instead, the DAX 40 needs a rise and a daily chart close above Tuesday's 26,293 high; in that case, the 5 August high at 26,404 would likely come back into view.
Short-term, the outlook stays bearish while the index trades below the 18 August high of 26,293 on a daily closing basis. Medium-term, though, the picture remains bullish while the DAX 40 holds above the 26 June low at 24,548, leaving room for a rebound even as near-term pressure builds.
Source: IG
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