DAX: Furthermore in the downward trend channel

The German stock market has tried non-successfully to overcome the upper trend line of the downward trend channel.

bg_dax_1173615
Source: Bloomberg

Currently the DAX is trading below the mentioned trend line at 10,350. This could be the beginning of an overdue correction in the direction of the former intersection-resistance at 10,065/10,000.

A closing price on weekly basis would be necessary to continue the upward movement. But this is not the only resistance on its way North. The former upward trend line at 10,790 and the outer downward trend line at 10,870 could make some problems. Above these resistances the intermediate high at 11,435 would be the next technical target price.

German stock markets DAX on daily basis

DAX_290416
Source: IG charts

This information has been prepared by IG, a trading name of IG Markets 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.