Germany DAX Technical: Potential recovery in progress after 5% sell-off

[Redator]

The price actions of the Germany 30 CFD Index (a proxy of the DAX futures) have staged a corrective decline of 5% from its current all-time high of 24,655 on 10 July 2025 to 1 August 2025 intraday low of 23,385.

Several key technical elements are now advocating for a potential recovery to kickstart a new impulsive up move sequence within its major uptrend phase.

Let’s now examine the Germany 30 CFD Index from a technical analysis perspective and construct a short-term (multi-day) trading set-up.

Fig.1: Germany 30 CFD Index short-term trend as of 11 Aug 2025 (Source: TradingView)

Fig. 2: Percentage of STOXX 600 component stocks above 200-day MA as of 8 Aug 2025 (Source: MacroMicro)

Preferred trend bias (1-3 days)

Bullish bias with 23,990 as key short-term bullish bias with next resistances at 23,140 (minor swing highs of 24/28 July 2025), 24,730 (Fibonacci extension), and 24,890 (Fibonacci extension and upper boundary of minor ascending channel from 19 June 2025 low).

Key elements

• The price actions of the Germany 30 CFD Index have reintegrated back above the 20-day and 50-day moving averages, which suggests the potential end of the recent minor corrective decline from the 10 July 2025 high to the 1 August 2025 low.
• The hourly Stochastic oscillator has dipped back into its oversold region (below 20).
• Market breadth condition in the broader European benchmark STOXX 600 has improved as the percentage of STOXX 600 component stocks trading above their respective 50-day moving averages has jumped to 57.4% as of last Friday, 8 August, from 46% on 1 August (see Fig. 2).

Alternative Trend Bias (1 to 3 days)

On the other hand, failure to hold at the 23,990 key support negates the bullish tone for another round of slide to retest the next intermediate supports at 23,790 and 23,600.

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