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Dax - How much upside potential can be expected?

by Timothy Straiton
Wednesday 24th January 2024

The German Dax index surged over one percent today driven by positive earnings results as well as January's PMI data and its impact on the future ECB's monetary policy.

While the short term technical outlook remains bullish with higher highs and higher lows, the monthly chart displays worrying signals, in particular bearish divergence on the 14 month relative strength indicator. The 161.80 percent Fibonacci upside projection target from the 2003 lows, suggests a push towards the 17500 area before a change in the current bullish market perception makes its presence felt.


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