Publication date: July 10, 2025

In the May 8, 2025 article, we paid extensive attention to the German stock index DAX-40. We indicated in the conclusion that a buy position could be considered at a close above 23,500. Meanwhile, it is two months later and another opportunity to consider a buy position presents itself as the German stock market continues with full speed towards the price target.

We recommend that you first read through the article mentioned above via the following link: DAX-Index: German euphoria not yet at an end
In it you will find background information and the scenarios calculated at the time for the DAX-40.

What is the current situation on the DAX-40

The index is currently above 24,500 points, reaching its highest level ever. The DAX-40 is benefiting well from better-than-expected quarterly results from German heavyweights such as SAP and Siemens. Thereby, growth is partly driven by the capital shift from the U.S. to Europe. Internationally, there is increasing demand for European stocks with stable cash flow and high dividends. These stocks are well represented in the DAX-40.

What is our expectation of the DAX-40

Both fundamental and technical analysts internationally are positive about the DAX-40.

We share this opinion and give you clear price levels to keep an eye on. Below is the price chart of the DAX-40 as of September 2024. You can see the panic selling after the publication of the import duties but especially the strong recovery that followed. Furthermore, we see the perfect correction in mid-June and the breakout above the previous top. This is a nice technical setup for the next ride up. Our expectation is clearly indicated in the chart: up with price target 27,000.

Conclusion

In the May 8 article we indicated that you could consider a buy above 23,500. If you missed that opportunity, another opportunity now arises.

You can consider a buy position or expand at the current level above 24,500. Price target for 2025 remains 27,000 for now. Thus, according to our algorithmic model, you can still gain about 10% in six months in the DAX-40. To reduce the risk, you can consider using the stoploss at a close below 22,700. At that point, the euphoria is really expected to be over for a while and the DAX-40 may correct further.

For now, the signals are on green. You can easily invest in the DAX-40 using an ETF. This is a fund that follows the price movements of the DAX virtually 100%. The ETF is easy to trade and low in costs.

Below are some well-known DAX ETFs. Please note that we have no interest in the products below and is not intended as an offer. We present the providers for your information only. Please consider for yourself which ETF to buy and get informed by your advisor.

Amundi ETF DAX UCITS ETF DR FR0010655712
Xtrackers DAX UCITS ETF 1C LU0274211480
iShares Core DAX® UCITS ETF (DE) EUR (Acc) DE0005933931

Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.