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DAX: Important support defended

At the beginning of this week the German stock market closed below the midterm upward trend line at 10,190, but not significantly.

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bg_dax_122082
Source: Bloomberg

At the beginning of this week the German stock market closed below the midterm upward trend line at 10,190, but not significantly. Only one day later the DAX moved upwards in the direction of the Fibonacci retracement (61.8 per cent) at 10,494.

Above this level the improvement could continue to the 200 days weighted moving average (WMA) at 10,767 and the intersection resistance at 10,856/10,861 (50% retracement and the upper trend line of the downward trend channel).

Below the mentioned support at 10,494 a further test of the midterm upward trend line would be very possible. The next support is the psychological price level at 10,000.

German stock market DAX on daily basis

DAX_121615
Source: IG charts

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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.