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.
Two important supports are under pressure. The target could be elow this the price level at 8,000.
Below the psychological level at 9,000 and the mid-term upward trend line (since March 2009) the DAX would generate a new and significant sell signal. The German stock market could continue the downward movement to the former highs at 8,132/8,150 from the years 2000 and 2007.
A closing price on weekly basis above the mentioned supports could be the beginning of a technical countermovement in the direction of the lower trend line of the downward trend channel at 9,550.
The falling weighted moving average (40 weeks) shows an intact downward movement. This supports the scenario of decreasing share prices in Frankfurt.