DAX40 Analysis: Key Levels in Focus as Volatility Picks Up

Ultima Markets Daily Market Insights – January 20, 2026

Today, we're diving into a technical analysis of DAX40, highlighting key price zones and potential scenarios as market volatility returns.

DAX40 Daily Chart Overview

Short-term momentum has softened as the index pulls back from elevated levels, though the broader intermediate trend remains firmly bullish. The current move appears corrective rather than trend-changing.

From a positioning perspective, patience is warranted. Traders may consider waiting for either a pullback into the 24,300 - 24,400 support zone or a confirmed move back above 25,100 before re-entering long positions.

Key Levels

Resistance

The immediate upside barrier sits at 25,087, aligned with the short-term moving average and is likely to cap near-term rebound attempts. Above that, 25,550 marks the recent all-time high. A sustained break above this level would signal renewed bullish momentum and open the door to further upside.

Support

Initial support is forming around 24,850 - 24,940, where price is currently stabilising. A deeper pullback toward 24,300 - 24,400 would represent a technically healthy correction, as this zone aligns with the medium-term moving average and prior breakout highs. Long-term support at 23,337 remains the critical line for the broader bullish structure, though a move toward this level is not currently anticipated.

DAX40 2-Hour Chart Analysis

On the H2 timeframe, the 24,900 - 24,940 zone has emerged as a key battleground. This area aligns with the medium-term moving average, and a decisive breakdown would suggest a shift in short-term market structure.

Scenario Watch

Bearish Continuation

A sustained H2 close below 24,900 would indicate the correction is gaining traction, with downside targets near 24,800 and 24,600.

Relief Bounce

With the Stochastic already oversold, a short-term rebound toward 25,100 is possible if price forms a bullish reversal candle around current levels.

Bullish Recovery

For buyers to regain control, price must reclaim 25,330, where the longer-term moving average resides. Until then, upside moves should be treated as corrective.

DAX40 Pivot View

The M30 chart shows an exhausted market still under bearish pressure, with downside surge remaining dominant. Any intraday rallies should be viewed as corrective until price can hold consistently above 24,960.

A break below 24,840 would likely trigger renewed selling, opening the path toward 24,600. Conversely, a firm close above 24,960 could spark short-covering move toward 25,060, though this would not yet confirm a trend reversal.

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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.