DAX slips below support as oil rises on Gulf tensions

The DAX fell through its short-term upward trend line at the open and then slipped below the 25,450-to-25,475 support zone that had held during the rebound. By late morning, the index was trading around 25,380, after having climbed back more than 600 points over two sessions from Tuesday’s low near 25,050.

That rebound had carried the index back toward resistance in the 25,665-to-25,690 area, but it failed to produce a clean breakout. Instead, Thursday’s drop leaves traders watching whether 25,350 to 25,380 can stabilize the market or whether a deeper pullback toward 25,300 and 25,200 develops.

The selloff also undercuts the broader European equity backdrop. Germany’s export-heavy market tends to be sensitive to swings in global growth expectations, energy costs and U.S. risk sentiment, so a spike in oil prices can hit both corporate margins and demand assumptions at the same time.

Technical indicators had already shown a fragile recovery: the DAX had been trying to claw back from recent weakness, but the latest move leaves its short-term trend damaged again. For investors, the key question is whether the current pullback is just another volatility burst or the start of a renewed test of the 25,050-to-25,120 support band that has been the larger safety net.

The next catalyst is likely to be the follow-through in oil, U.S. futures and any further headlines from the Middle East, with traders needing a firm hold above 25,350 to avoid a deeper retracement.