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DAX is waiting for the year-end rally

The period from mid-December to the beginning of January is one of the strongest market phase of the year.

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

From a statistical point of view the year-end rally will start on December 19th and ends on January 6th. The investors are now waiting for this strong market phase.

Currently the DAX is in a correction phase. The trend line at 9425 and the weighted moving average (200 days) at 9484 are being tested at this moment. Above the mentioned levels there are some resistances on the daily chart e.g. the Fibonacci retracements at 9618, 9735 and 9878 and the trend line at 9794/9795. The year-end rally could help the DAX to reach the resistance at 10,016/10,048 and the new historic high at 10,093.

Below the supports at 9484 and 9425 the current consolidation could be continued. In this worst case scenario the trend line at 8982/8952 would be the next target. 

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.