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DAX and the Grexit

Grexit or no Grexit that is the question. The Greek debt crisis has been affecting the financial markets for several weeks.

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.
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Source: Bloomberg

Due to this the German stock market tested the exponential 200 days moving average (EMA) in mid June.

After the successful test of the mentioned indicator a strong countermovement was the result. The DAX closed above the Fibonacci retracement (38.2 per cent) at 11,250 and the upper trend line of the short-term downward trend channel at 11,480.

Currently the German stock market is testing the trend line at 11,454/11,467. A closing price above this level would be very helpful. In this case the DAX could continue the recovery to the next Fibonacci retracement (23.6 per cent) at 11,694.

A return back into the trend channel would be a disappointment. Possible targets could be the Fibonacci retracement at 11,250 and the psychological price level at 11,000.

German stock market DAX on daily basis

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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.