Bull Trap Snaps Shut Mercilessly: U.S. Capital Brutally Chokes Off the DAX Rally!
A grueling cat-and-mouse game on the Frankfurt trading floor! Anyone not trading lightning-fast intraday movements in the current environment is truly not to be envied. On Tuesday, the German leading index feigned a brilliant flight forward, only to have the rug pulled out from under it completely in the afternoon. Was that already the much-cited, highly dangerous bull trap? As soon as big U.S. capital joined the trading, the upward movement was rigorously choked off. At the official Xetra close, the DAX just barely limped across the finish line with a razor-thin plus of 0.38% at 24,400.65 points, but after-hours trading immediately knew only one single, brutal direction: steeply downwards!
War Panic and Oil Emergency: Merck Ignites the 120 Euro Turbo!
Initially, the market was still celebrating the U.S. President's hesitant stance regarding the looming military strike against Iran. But the toxic disillusionment followed promptly in the late afternoon: An official comment clarified that the attack was merely postponed by two to three days! To make matters worse, NATO, under massive pressure from increasingly scarce oil reserves in Europe, is visibly drawing closer to supporting a U.S. deployment. This highly explosive mix swept profits off the table immediately. Amidst this chaos, at least Merck KGaA shone with a brilliant plus of 2.5%. Zalando and E.ON (+1.3% each) also defied the downward pressure. The Merck share is now aggressively scratching at the 120 euro mark and, with this massive momentum, is setting its sights on the pre-crisis level of early March at 128 euros!
Deadly Chart Signal: Will the "Shooting Star" Drag the DAX into the Abyss?
Since fundamental economic news is currently an absolute rarity, the financial markets remain defenselessly at the mercy of geopolitical shockwaves and the completely unleashed oil price. From a technical perspective, all alarm bells are now ringing: Tuesday leaves behind a flawless "shooting star"—a crystal-clear, highly dangerous sell signal in candlestick analysis! Everything now hinges on the critical support at 24,150 points. If this last bastion fails to withstand the bears, an immediate, uncontrolled plunge below the magic 24,000-point mark threatens. The next saving floor won't be waiting until deep in the technical basement at 23,700 points!
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