DAXEUR

Global stock indices demonstrated remarkable performance at the beginning of the new year. While it was observed that China and Japan moved in different directions in Asian markets, positive responses from the US and Europe stand out. The average 12-month analyst expectation for the indices varies between 10-15%, yet this month, some indices have met 40% of these expectations, while others have met 85%. This situation not only indicates alignment between fundamental and technical indicators but may also allow for upward revisions in analyst forecasts. The Dax40 index is showcasing the best performance of the month with over 9% optimism.

When conducting a technical analysis of the Dax40 index, the lower point of the Envelope indicator (21585) and the 21-period average (21650) emerge as critical levels in the short term. The index is expected to continue exhibiting a positive outlook above these reference indicators. In this context, upward movements towards levels of 21900, 22017, and 22135 may be observed. The upper point of the Envelope indicator (22017) and other indicators provide significant clues about a potential trend rally or corrective sell-off.