DAX is treading water: hoping for the Trump diplomacy effect
The German leading index remained indecisive on Wednesday and was characterized by a slightly downward trend. The Xetra closing price was 24,603 points, which corresponds to a daily loss of 0.73 percent. Despite temporary attempts to stabilize in the afternoon, the market lacked the strength for a sustained upward breakout as caution dominated in view of the geopolitical situation and mixed corporate news.
Oman summit in sight: Trump and Iran are focusing on rapprochement
Only after-hours headlines from geopolitics provided a glimmer of hope: According to consistent reports, US President Donald Trump has agreed to a meeting with representatives of Iran in Oman. This surprise diplomatic opening provided positive momentum in late trading and could provide the DAX with much-needed tailwind for the remaining two trading days of the week. An important technical bright spot: Tuesday’s daily low was not broken on Wednesday, which preserves the chance of stabilization.
Symrise sprint vs. BASF setback: chemical sector in focus
Among the individual stocks, the shares of Symrise AG stood out on Wednesday. With a strong gain of 4.7 percent, the stock moved to the top of the DAX list. Although this jump in price does little to change the overall downward trend of the share at the moment, from a technical point of view such a sprint is often the first sign of emerging momentum.
At the very bottom of the table, however, were the stocks of BASF AG, which bore the red flag with a loss of 1.3 percent. In contrast to Symrise, BASF shareholders can look back on overall very positive developments in the last few weeks, which is why yesterday’s loss can be seen as a healthy profit-taking.
Chart technical conclusion: Hanging game with falling highs
From a chart perspective, the picture in the DAX remains mixed. The index continues to hover within Monday’s trading range, but fails to set new intraday highs. Instead, falling highs and falling lows are emerging in the short-term area – a constellation that classically suggests further selling pressure. However, as long as the DAX closes above Monday’s low, the scenario of a positive turnaround remains intact.
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