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DAX: Psychological support in focus

Since mid of April the German stock market has been trading in a correction mode and a downside trend channel.

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_frankfurt_financial_district_1530939
Source: Bloomberg

The DAX hast lost some supports in the recent days. The situation from the technical point of view is a little bit critical.

Currently the DAX is testing the Fibonacci retracement (38.2 per cent) at 11,250. Below this support on closing price the lower limit of the mentioned trend channel at 11,160 would be the next target.

We see a very important support zone at 11,000 on the daily chart. This is a psychological level. Further supports are the increasing 200-days weighted moving average (WMA) at 10,996, the trading range at 10,987/10,852 and finally the next retracement at 10,892 (50.0 per cent).

German stock market DAX on daily basis

DEM_Daxtageschart07052015
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.