Image Source: Unsplash
 

• Instrument: DAX
• Average Pattern Move: +6.57%
• Timeframe: March 21 – June 07
• Winning Percentage: 90%

Market Analysis and Drivers

Germany’s DAX index has been hit by tariff concerns to start the week, with the auto sector at the epicenter of the fallout. The index has dropped by as much as 2.2%, with Volkswagen, Mercedes-Benz, BMW, Daimler Truck, Continental, and Porsche all sinking around 5% apiece. These losses come as US President Donald Trump reignites trade tensions with the EU, particularly targeting the automotive sector, which he has long criticized as a key contributor to the trade imbalance.

The uncertainty surrounding potential tariffs and retaliatory measures presents a significant downside risk to the DAX, but will seasonal strength provide a lifeline? Could this even provide a dip buying opportunity?

Running Length: 00:02:38

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