DAX: A correction has started

The investors are still waiting for a new buy signal on the German stock market.

Source: Bloomberg

At the beginning of November the DAX reached the intersection-resistance. This contained the simple 200 days moving average (SMA) at 11,095, the upper trend line of the downward trend channel at 11,060 and the psychological level at 11,000.

The DAX could not break up the mentioned resistances. This was the starting signal for the current correction. As a result the Fibonacci retracement (50.0 per cent) at 10,861 and the falling weighted 200 days moving average (WMA) were broken down.

The technical target price is the retracement (61.8 per cent) at 10,495. The next support is the mid-term upward trend line at 10,040.

The technical situation looks like not very well at this moment. The situation could improve only above the mentioned intersection-resistance and the Fibonacci retracement (38.2 per cent) at 11,224.

German stock markets DAX on daily basis

Source: IG Charts

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