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.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

DAX with the next breakout attempt

After the jump above the intersection-resistance at 10,000/10,065 the German stock market has continued the upward movement.

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_german_stock_exchange_1550419
Source: Bloomberg

Due to this the DAXhas reached the upper trend line of the downward trend channel (since April 2015) at 10,380.

Temporarily the DAX traded above this trend line. But currently the German blue chips are below the upper trend line. For a successful breakout a closing price on weekly basis would be necessary. In this case the former upward trend at 10,755 would be the technical target price.

In the scenario of a non-successful breakout the new support zone at 10,000/10,065 could be tested. This could be realistic. The weighted 200 days moving average points still to the south.

German stock market DAX on weekly basis

DAX-220416-Small
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.