The DAX 40 has shown resilience compared to other European markets, which have experienced significant declines. This can be attributed to the strong performance of key stocks like Deutsche Telekom and SAP.
The broader economic landscape remains challenging, with cyclical stocks under pressure due to economic concerns in Europe and China.
The recent political developments in the United States, including Donald Trump's victory and the appointment of Scott Bessent as US Treasury Secretary, could have a positive impact on European indices.
The upcoming German elections in February will also play a crucial role in shaping market dynamics. The CDU/CSU's leading position in the polls is seen as supportive for the DAX, as the party is perceived as "pro-business" and advocates for strengthening the Franco-German relationship.
The technical analysis indicates that the DAX 40 is currently in a bullish trend, with major support at around 18,900 points. Traders are advised to consider these technical indicators when making investment decisions.
The investment strategy for investors is to buy above the 18,900-point support level, with a target of 20,000 points and a stop-loss set at 18,700 points.
Monitoring both technical indicators and macroeconomic developments will be crucial for investors to navigate the complexities of the DAX 40 and position themselves for potential gains in the coming months.