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DAX has lost a little bit of power

The performance of the German stock market has been disappointing recently. The DAX has lost a little bit of momentum. The problem is the all-time high at 12,221 from March.

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

Currently the German blue chips are trading in a sideways movement. The lower limit at 11,861/11,853 has been tested in the recent weeks. The DAX could generate a new buy signal above the upper limit at 12,221. The target price is the former upward trend line at 12,585.

Below the mentioned trend line at 11,861/11,853 and the 21-days-moving average (EMA) at 11,920 this could be the start of a new correction. The next supports are the 23.6 per cent Fibonacci retracement at 11,600 and the trend line at 11,454/11,467.

German stock market DAX on daily basis

DEM_DAX_AUM_090415
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.