DAX Defends Key Support as Bullish Reversal Emerges

In today’s technical analysis, we need to take a closer look at equity indices, with a particular focus on the DAX. Yesterday’s session brought a proper bullish reversal across indices, and in the case of the DAX, this move did not occur at a random level.

The reversal took place at an absolutely key horizontal support zone in the 24,600 area. This zone is technically important because it previously acted as resistance back in July and again in October. After the breakout, this level switched its role to support, which makes it a critical reference point for market sentiment.

During yesterday’s session, price briefly moved below this green support area but then rebounded quickly and closed back above it. This sharp reclaim of the level constitutes a clear defense of support, marked with the orange rectangle. From a technical standpoint, this type of false breakdown followed by a strong recovery is often a bullish signal, suggesting that sellers failed to gain control and buyers stepped in aggressively.

As long as the DAX holds above yesterday’s lows, the short-term sentiment remains positive. The successful defense of this major support zone reduces immediate downside risk and can help improve market mood, at least in the near term. While the broader environment may still be fragile, technically speaking, the DAX has sent an encouraging signal that buyers are willing to defend key levels.

Source: https://www.axiory.com/analytics/technical-analysis/dax-defends-key-support-as-bullish-reversal-emerge