Chartbook: DAX Chart: Fresh highs, but headwinds appearing

Anticipated gains have accelerated higher,

with prices posting a fresh all-time high just above the 23,000 Fibonacci projection, before settling back.

The monthly Tension Indicator remains positive, highlighting room for still further strength in the coming weeks. But flat overbought monthly stochastics are expected to limit initial scope in profit-taking towards the 23,900 projection. A close above here, however, would turn sentiment outright positive and open up a test of psychological resistance at 25,000.

Additionally, there are early signs of German 10Y yields strengthening, relative to German equities, suggesting possible headwinds into further equity gains.

Meanwhile, support is raised to the 22,000 break level.

A close beneath here would add weight to sentiment and prompt a corrective pullback towards stronger support at the 20,523 year high of 13 December 2024 and congestion around 20,000.

A further close beneath here would turn sentiment outright negative and confirm a deeper multi-month bear trend, initially targeting 19,000.