CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Over 195,000 clients worldwide
15,000 markets worldwide

DAX: A correction has started

The investors are still waiting for a new buy signal on the German stock market.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
bg_dax_1369829
Source: Bloomberg

At the beginning of November the DAX reached the intersection-resistance. This contained the simple 200 days moving average (SMA) at 11,095, the upper trend line of the downward trend channel at 11,060 and the psychological level at 11,000.

The DAX could not break up the mentioned resistances. This was the starting signal for the current correction. As a result the Fibonacci retracement (50.0 per cent) at 10,861 and the falling weighted 200 days moving average (WMA) were broken down.

The technical target price is the retracement (61.8 per cent) at 10,495. The next support is the mid-term upward trend line at 10,040.

The technical situation looks like not very well at this moment. The situation could improve only above the mentioned intersection-resistance and the Fibonacci retracement (38.2 per cent) at 11,224.

German stock markets DAX on daily basis

DAX_111315
Source: IG Charts

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.