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.
At the beginning of this week the German stock market closed below the midterm upward trend line at 10,190, but not significantly. Only one day later the DAX moved upwards in the direction of the Fibonacci retracement (61.8 per cent) at 10,494.
Above this level the improvement could continue to the 200 days weighted moving average (WMA) at 10,767 and the intersection resistance at 10,856/10,861 (50% retracement and the upper trend line of the downward trend channel).
Below the mentioned support at 10,494 a further test of the midterm upward trend line would be very possible. The next support is the psychological price level at 10,000.