Deal Disillusionment Instead of Mega Rally: Is the DAX Missing the Magic 25,000-Point Rocket?
The expected buying panic is failing to materialize! Although the German leading index started Monday with a massive, bullish price gap after the epochal announcement of the U.S.-Iran deal, the really big price fireworks were mercilessly choked off. In the end, the DAX salvaged a solid plus of 1.05% to 24,894.01 points across the finish line. The hoped-for breakthrough above the psychologically all-important 25,000-point sound barrier has thus failed with a crash for now! The reason for the ice-cold disillusionment on the trading floor: Critics are already tearing the historic deal apart in mid-air, degrading it to a weak imitation of the old Obama era. Since the final, hard-hitting details are still being rigorously kept under wraps, sudden uncertainty rules instead of unconditional euphoria!
Oil Price Crash and FMC Turbo: Is the Ultimate Economic Liberating Blow Igniting Now?
While the stock markets hesitate, the deal is hitting the energy markets with brutal force! The price of oil is crashing massively, and in its free fall, a barrel of Brent is already targeting the saving mark of below 80 U.S. dollars. This gigantic price slide could finally give the suffocating economy the long-awaited room to breathe! Meanwhile, on the individual stock floor, brave investors celebrated fat profits: Fresenius Medical Care ignited the ultimate turbo and secured the undisputed daily victory with a brilliant price leap of 2.6%! Landing in the runner-up spots were the GEA Group (+1.5%) and Beiersdorf (+0.5%). But the utmost caution is advised with Beiersdorf: The stock is still trapped in a toxic downward trend—the small plus is currently nothing more than an absolutely deceptive correction!
Price Gap Trap and Fed Shock: Is a Plunge to 24,750 Points Looming on Tuesday?
From a charting perspective, the DAX is now walking on an extremely dangerous tightrope! Monday's massive price gap is still gaping wide open—a literal invitation for the bears to initially batter the index relentlessly downwards toward 24,750 points on Tuesday! Exactly there, however, awaits the ultimate opportunity: If the old Friday high holds as an iron support, it provides the bulls with the perfect launchpad to build up new, explosive momentum. Statistically speaking, such a rebound scenario would be an absolute statement of power before the mighty U.S. Federal Reserve triggers the ultimate stock market quake with its highly explosive interest rate decision on Wednesday!
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