DAX 40 Falls Ahead of Key German PMI Data: Technical Outlook and Trading Scenarios

Meanwhile, Germany’s November inflation data released on Friday showed that the annual rate held at 2.3%, while some experts had expected an acceleration to 2.4%. On a monthly basis, the index fell from 0.3% to –0.2% versus a consensus of –0.3%. In contrast, the harmonized index of consumer prices rose from 2.3% to 2.6% year-on-year, beating preliminary estimates of 2.4%. Investors also focused on October labor-market figures: the number of unemployed increased by 1,000 after falling by the same amount a month earlier, while analysts had forecast a rise of 5,000; the unemployment rate remained at 6.3%. On Friday at 09:00 (GMT+2), Germany will release manufacturing orders data. Despite ongoing infrastructure programs, the monthly figure is expected to slow by 0.5% after a 1.1% increase previously.

Support and resistance levels

Bollinger Bands on the daily chart are edging lower, with the price range narrowing, which reflects a mixed trading pattern in the very short term. MACD is rising, maintaining a relatively firm buy signal (the histogram is above the signal line). Stochastic has bounced down from overbought territory and is turning lower, indicating the risk of a more pronounced downside movement in the coming sessions.

Resistance levels: 23,891.3, 24,139.6, 24,320.5, 24,518.0.

Support levels: 23,678.4, 23,455.4, 23,084.8, 22,901.1.

Trading scenarios and DAX 40 outlook

Short positions may be opened after a confident breakout below 23,678.4 with a target at 23,200.0. Stop-loss — 23,891.3. Implementation horizon: 2–3 days.

A rebound from 23,678.4 as support followed by a breakout above 23,891.3 may serve as a signal to open new long positions with a target at 24,320.5. Stop-loss — 23,678.4.