After the utter carnage the German $DAX endured after Russia’s invasion and the resulting effects this had on energy policy in Europe, let’s see how it looks now.
And in fact, there may some room for optimism. Though the selloff was sharp, and though it remains below a down trend line, the rally from the lows has been impressive and it now sits well above all of the prior highs from 2018-2020.
Furthermore, nice, sharp selloffs with sharp rebounds lay the potential for inverses, which I have depicted below. As absurd as it is for me to point these out here given the news flow, not doing so is a mistake I won’t repeat again after 2020 (I saw many, but I refused to believe them given the pandemic and lockdowns). This time, let’s at least acknowledge their presence.
If it rallies again, it may go at least 23% from here, if not even further.
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