In recent weeks, there have been some interesting trends in the German index, so in this week's review, we will take a look at the long-term chart to help correctly view these trends.

The weekly chart provides a detailed explanation of how the market has significantly recovered after the low point of the pandemic. Then, due to its dependence on Russian oil and gas, it was hit by the dual impact of the new interest rate hike environment and the invasion of Ukraine, seriously affecting the German economy.

This brings real uncertainty to industries and households that need large-scale power outages during particularly bad winters. Fortunately, so far, the winter has been relatively mild, and the worst-case scenario has been avoided due to the restructuring of oil and natural gas supplies.

This has boosted market confidence in recent weeks. Of course, we are also increasingly hoping that the Federal Reserve and European Central Bank can continue to slow down the pace of interest rate hikes, and may even start cutting rates in the second half of the year.

On the chart, we can see that, as is often the case after major measures, 50% of the regions achieved most of the selling before 2022. The price has decisively broken through the previous bearish trend blue line, above the 38.2% pullback zone. This may increase the confidence of bulls that the market is now returning to its previous highs.

However, some Wall Street analysts are still concerned that the gains in recent weeks may still be a bear market rebound, but they have been waiting for a more medium-term correction for some time. In order to gain more weight for this bearish scenario, they need to first see the price trend fall below the 38.2% level, which is around 13150.

Therefore, although the price trend remains above the 13150 level, the overall positive tone is expected to continue. However, it should be noted that if prices decline and concerns about a global economic recession increase, concerns about a bear market rebound may quickly gain the upper hand.