The DAX 40 hit a new all-time high as investors rotated out of expensive US technology stocks ahead of the US Independence Day weekend. IG’s technical analysis puts the next upside targets at 26,000 and a 161.8% Fibonacci extension at 28,400, with the index staying bullish above its late-June low.
Germany’s DAX 40 reached a fresh all-time high, lifted by rotation out of expensive US technology stocks ahead of the prolonged US Independence Day weekend.
That rotation is visible across US benchmarks too. The Dow Jones closed at a record high after June’s non-farm payrolls showed just 57,000 jobs created, well below forecasts of 110,000, easing concerns over near-term Federal Reserve tightening. On the other side of the trade, the Philadelphia Semiconductor Index dropped 5.4% as investors locked in profits, with Nvidia and SanDisk among the biggest decliners. For traders sizing a position, our guide on how to trade the DAX 40 sets out the mechanics.
Where the DAX 40 goes next
The next upside targets sit at the minor psychological 26,000 mark, followed by a 161.8% Fibonacci extension at 28,400, projected from the August 2024 low. That extension level is measured from the October 2022-to-May 2024 bull market.
If the index retraces instead, the area around the January and May peaks at 25,438-to-25395 may offer support. IG rates the short-term outlook bullish while the DAX holds above its 26 June low at 24,557, and the medium-term picture bullish above the 30 April low at 23,716.
Source: IG
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