DAX Forecast: Technical Tuesday | October 7, 2025

• DAX forecast remains bullish despite short-term consolidation
• 24,300 and 24,000 serve as key near-term support zones
• A sustained break above 24,650 could open the path toward 25,000 and possibly 26,000

 

With the US government shutdown dragging on, global markets have entered a period of quiet, particularly across FX. Yet, equity indices remain upbeat — and the German DAX is no exception. Despite a modest pullback, the DAX forecast still points to strength, as the index consolidates its recent breakout gains in what appears to be a classic pause before another leg higher.

 

Technical setup: a breakout catching its breath

 

Last week’s explosive move higher marked a clean breakout from a long consolidation phase, a move that carries real technical weight given how long the market had been coiling. Now, this brief lull makes perfect sense. Momentum indicators are easing off overbought levels, resetting the stage for potential fresh buying later in the week.

 

From a structural point of view, the DAX looks like it’s gearing up for another run towards new highs. The hesitation around prior resistance may be lulling bears into a false sense of security. A push through that resistance could easily trigger stop orders from short positions, propelling the index even higher.

 

 

Thus, a new record high could well be on the cards soon, possibly even today or later this week – especially if we see resolution around the US political impasse.

 

Before looking at the daily chart, let’s first discuss an interesting intraday level first…

 

Short-term support being tested

 

On the hourly chart, the 24,300 level has already shown its importance, providing a clear reaction zone where buyers stepped in yesterday. That makes it a key short-term pivot to watch today.

 

 

DAX forecast: Support levels to watch on the daily chart

 

Even if the index dips slightly and breaks the above mentioned 24,300 support level, the daily chart highlights plenty of other support beneath current levels. In particular, the 23,950–24,000 region stands out as the main structural floor after last week’s breakout. This zone, which previously acted as both resistance and support, now forms a key area to watch for any potential retest.

 

 

Below that, 23,750 is the line in the sand – any move below that would call the breakout into question. Further down, 23,400 represents the longer-term base of the bullish structure, having withstood multiple attempts by sellers to drive the market lower.

 

For now, though, price action suggests the market is trying to build a platform above 24,300 — a level that could easily act as the springboard for the next advance.

 

Upside targets for DAX: 25,000 and beyond

 

With the macro backdrop still supportive – Germany’s expected fiscal stimulus being a key tailwind – the path of least resistance remains firmly higher. Equity sentiment across Europe and the US remains buoyant, and the DAX appears well-positioned to join its global peers in exploring new record territory.

 

Therefore, a clean breakout above the 24,500–24,650 resistance band looks increasingly likely. If this happens, it would potentially open the door to the psychologically significant 25,000 mark next. Beyond that, technical projections derived from the previous consolidation range suggest an extended target between 25,800 and 26,280.

 

That 26,000 region stands as the measured move target — ambitious but technically justified given the strength of the prior breakout.

 

Key takeaway points from this Technical Tuesday edition

 

The DAX’s bullish trend remains intact, with short-term consolidation providing an opportunity for momentum to reset. As long as 23,750 holds, dips look buyable, not threatening. Traders will be watching closely for signs of renewed upside momentum as the week progresses. It looks increasingly likely that a new hit above July’s peak (near 24,650) is on the cards, and if the index clears that area decisively, a run towards 25,000 and beyond seems the most probable outcome. In short, this DAX forecast continues to favour the bulls.

 

Source for all charts used in this article: TradingView.com

 

 

-- Written by Fawad Razaqzada, Market Analyst

Follow Fawad on Twitter @Trader_F_R