- The German index is testing a support level above the 23,200-point zone
- The market reaction to the escalation of conflict in the Middle East is limited
Recommendation:
Long position at market price
- TP1: 24,000
- TP2: 24,300
- SL: 23,200
Opinion:
The German DE40 index is rebounding from a key support level near 23,200 pts, which aligns with previous local lows and sits just above the 50-day simple moving average (SMA50 ~23,000 pts). This is a technically strong zone that has acted as a turning point in recent months.
Despite the geopolitical escalation in the Middle East, the market reaction is moderate, suggesting that investors remain focused on fundamentals and local economic data. The index maintains a higher-high and higher-low structure, and the RSI is stabilizing in the neutral zone (~50), creating room for further upside.
We recommend opening a long position at market price, with a stop-loss order set to minimize potential risk.
Source: xStation 5
Methodology
This recommendation is based on an analysis of the geopolitical situation following the escalation of conflict between Israel and Iran, along with technical factors on the DAX chart. Target levels were identified using classic support and resistance zones and Price Action analysis.
