DAX Awaits Breakout from Accumulation Phase

A confirmed move above key breakdown levels may reinitiate the bullish trend and trigger the next expansion leg

Jun 03, 2025

Accumulation at Support – Awaiting Breakout Confirmation

The DAX (GER40) is currently consolidating in an accumulation phase on the 4H timeframe, following a prior downleg that found support just above the key weekly and daily level at 23,607. Price action has since formed a short-term H4 countertrend, marked by lower highs and a descending trendline, which remains intact for now.

The current structure presents a potential reversal opportunity. A break of the H4 countertrend line, in confluence with reclaiming the green H1 breakdown level (~24,134), would indicate bullish intent and a possible transition back into the prevailing long trend.

However, confirmation of a bullish expansion phase will only occur above the weekly Fibonacci target 138.2 level (~24,317). This area also aligns with a prior clean H1 breakdown, serving as a critical decision point for momentum traders. A breakout above this zone would invalidate the prior bearish structure and unlock higher Fibonacci extension targets at:

24,440 (138.2% extension)
24,650 (150–161.8% cluster target)

As long as price holds above the weekly pivot support and continues to build a base within this accumulation range, the upside scenario remains valid. Failure to reclaim the H1 breakdown level, however, would keep the market within the corrective structure.