Fireworks in the DAX: Will the Magic All-Time High Fall in May?
What a breathtaking rally! On Wednesday, the German leading index set off absolute fireworks on the trading floor, dynamically pushing into the thin air above the psychologically essential 25,000-point mark. With a massive daily gain of 2.12%, market psychology has done a 180-degree turn—from a panicked look into the abyss to pure euphoria. The historic all-time high from January is now barely 500 points away. This brilliant catch-up chase is being fueled by tangible geopolitical rays of hope: the feared escalation spiral between the U.S. and Iran appears to have halted. The trading floor coldly evaluates Tehran's missile attacks as a tactical flexing of muscles for upcoming negotiations. At the same time, speculations about a possible ceasefire between Russia and Ukraine are massively fueling investors' imaginations. The logical consequence: although the price of Brent crude oil is still trading above the $100 mark, its short-term trend is finally pointing noticeably downward!
Adidas Ignites the Turbo: Is This the Starting Gun for a Major Trend Reversal?
At the individual stock level, Adidas delivered an absolute masterclass on Wednesday. With a brilliant price premium of 4.5%, the sporting goods giant sovereignly secured the daily victory and powerfully pulled the entire leading index up with it. The catalyst for this massive price jump was a surprisingly strong start to the year. However, euphoria is only partially justified: despite this glowing daily performance, the stock remains stuck in a tough overarching downward trend and is currently merely undergoing a technical correction. Whether this show of strength is actually the longed-for starting gun for a sustainable trend reversal remains to be seen. To achieve this, the bulls must absolutely crack and sustainably surpass the prominent higher low at around 162 euros!
Fateful Thursday: Will the Fiercely Contested 25,000-Point Bastion Hold?
For today, Thursday, the technical indicators are initially set to green thanks to the extremely strong momentum. The all-important question for market participants now is: Can the DAX sustainably defend the newly conquered sound barrier of 25,000 points, or will we experience an immediate sell-off at this high level? The bulls have already achieved an important milestone: the gaping price gap from March has been impressively closed. If the leading index manages to maintain these regions and continue to uphold the buying pressure, the next massive resistance zone at 25,415 points will inevitably move onto investors' radar. The momentum currently speaks for the buyers!
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