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.

DAX on the way of improvement

The current technical situation is very interesting.

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_1530935
Source: Bloomberg

The German stock market could continue the recovery. Only one resistance is standing in the way.

This is the lower trend line of the downward trend channel at 10,170. This resistance should be broken up. The 40 weeks weighted moving average (WMA) at 10,832 would be the target price.

The moving average has turned downwards significantly. This means the end of the mid-term upward movement. Due to the strong seasonal pattern (October to December) the DAX could reach the mentioned trend indicator on short-term view.

Below the psychological support at 10,000 and the mid-term upward trend line at 9.890 the lower limit of the former trading zone at 9.000 would be the next target.

German stock market DAX on weekly basis

DAX_101915
Source: IG charts

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

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.