- The DAX remains in a broader bullish trend, trading above 25,000 with momentum building for a potential breakout above 25,500 toward 25,750, as long as key supports and the rising trendline hold.
- Technical indicators (MACD and RSI) show improving but not overextended momentum, while market sentiment stays cautiously positive amid trade-related uncertainty and focus on earnings.
The DAX index is trading above 25,000 points again, but it opens slightly lower by 25.30 points or 0.10%. Some financial brokers in the market were expecting that to happen at the opening time. The index is currently trading around 25,151, down 0.10%. Investors are awaiting the release of quarterly earnings from several major German companies. It includes Allianz, Munich Re, Deutsche Telekom, and Scout24.
The latest results from US tech giant Nvidia and software company Salesforce did not satisfy investors and left them worried. However, Nvidia reported very strong quarterly earnings. Apart from that Nividia’s CFO signaled possible long-term pressure from Chinese competitors, which raised concerns. Analysts justified that earnings were not strong enough to restart sentiment around AI stocks, and investors remain cautious.
Let’s take a technical look at the DAX index trading chart before examining how the performance of its underlying stocks and their earnings releases influences the index.
DAX Index Price Forecast | Support, Resistance, and Breakout Scenarios:
The DAX index remains in a broader upward trend, supported by a rising trendline that has been guiding price action since late November. After rebounding from the 24,270-24,300 support zone marked in red line, the index resumed its climb and is now trading above 25,000.
Recently, price has been consolidating just below the 25,337-25,500 resistance area, where previous highs were formed. This suggests that bulls are attempting to build momentum for another breakout. A sustained move above 25,500 could open the door toward the next major resistance near 25,750.
On the downside, immediate support stands around 23,030, followed by the stronger horizontal level near 24,270, whilch align with the broader trend structure. From the momentum perspective, the MACD indicator shows improving bullish pressure but is still hovering near neutral territory. This indicates a gradual recovery in upside momentum.
Meanwhile, the RSI sits around the mid-to-upper 50s, reflecting moderate bullish momentum without entering overbought territory. This suggests there is still room for further upside. Overall, the technical structure remains cautiously bullish as long as the DAX holds above its rising trendline and key support levels.
Why do earnings releases of German companies affect the DAX index?
The earnings releases of German companies affect the DAX because the index is made up of Germany’s largest publicly traded companies. Their performance directly influences the index’s value.
Since DAX companies reflect key sectors of the German economy (industry, technology, finance, and automotive), their earnings give insight into Germany’s overall economic health. Strong corporate earnings generally support the DAX, while disappointing results can trigger declines, especially if major index components are involved.
For Example:
- Among the standout updates, Puma reported its full-year 2025 results, showing a 13.1% decline in performance. The company linked the weaker outcome to its completed strategy reset. It posted an operating loss of 357.2 million euros, compared with a profit of 548.7 million euros the previous year. The loss was larger than analysts had forecast. Sales weakened significantly in the second half, and profit margins dropped by 260 basis points to 45%. Puma also proposed skipping its 2025 dividend and warned it could report another operating loss of between 50 million and 150 million euros this year.
- In contrast, Rolls-Royce delivered stronger results, reporting a 40% increase in annual profit for 2025. The company also expressed confidence in further growth, forecasting profits of over 4 billion euros in 2026.
Market Sentiment in Europe:
Following recent global trade developments, market sentiment in Europe remains cautious. Although uncertainty persists after Donald Trump’s tariff announcements. Investors have taken some comfort from the implementation of a 10% tariff instead of a more aggressive one of 15% rate. As a result, attention has shifted more heavily toward earnings season.
Strong results from major listed companies can push the DAX higher, while disappointing earnings, especially from large firms, can weigh on the index.
The DAX (Deutscher Aktienindex) is a major stock market index that tracks the performance of the 40 largest and most actively traded companies listed in Germany.
It represents the overall performance of the German stock market and is widely used as a benchmark for the German economy.