DAX Hits 22,000 as CPI, Powell Testimony Awaited

Market Highlights:

• Asian Stocks Mixed: Most regional indices showed muted gains as investors awaited U.S. inflation data.
• Hong Kong Stocks Surge (+2%): Led by Alibaba (+8%) on AI partnership rumors with Apple, BYD (+5.5%) on ADAS integration, and strong moves in Tencent (+2.2%) and Xiaomi (+4%).
• Mainland China Flat: Shanghai Composite +0.2%, CSI 300 unchanged.

U.S. Market Preview:

• Futures Steady: Investors await CPI data at 13:30 GMT and Powell's testimony at 15:00 GMT for rate clues.

European Markets:

• DAX Hits 22,000: A historic milestone for the German index.

Key Events (GMT Time):

1. 13:30 – U.S. CPI & Core CPI (Inflation Indicator)
2. 15:00 – Fed Chair Powell Testifies (Monetary Policy Insight)
3. 15:30 – Crude Oil Inventories (Supply & Demand Data)

Earnings to Watch:

• Robinhood (HOOD) reports postmarket
• Expected EPS: $0.42
• Implied Move: ±$5.93

DAX Technical Analysis 4 Hour chart

The Germany 40 (DAX) on the 4-hour chart continues its strong bullish trend, reaching a new high at 22,128.8. The price remains well above the 20, 50, 100, and 200 EMAs, reinforcing the prevailing uptrend. However, the current price action suggests some hesitation at this level, indicating potential resistance.

The RSI is at 72, signaling overbought conditions, while the Stochastic RSI is above 90, suggesting that the market may be stretched in the short term. This increases the likelihood of a minor pullback or consolidation before further upside movement. However, as long as the price remains above key moving averages, the bullish trend remains intact.

If the price breaks above 22,128, it could trigger further upside momentum, with the next potential resistance near 22,200-22,300. On the downside, support levels to watch are 21,750 (50 EMA) and 21,500, where previous consolidations occurred. A break below these could indicate a deeper correction toward 21,100.