DAX: Psychological level is causing problems

In the last week of October the German stock market reached the strong intersection-resistance at 10,830/11,000.

Source: Bloomberg

But the DAX was not able to jump above the mentioned technical levels.

But this would have been necessary to continue the upward trend. The next resistances are the upper trend line of the downward trend channel at 11,110 and the Fibonacci retracement (38.2 per cent) at 11,224. In this scenario the next retracement at 11,675 (23.6 per cent) would be the technical target price.

At this moment the intersection-resistance is making some problems. A further correction is also possible. The DAX has got some good supports. The first one is the retracement (61.8 per cent) at 10,495. Below this we see an intersection-support – comprising the psychological price level, the lower trend line of the downward trend channel and the mid-term upward trend line – at about 10,000.

Source: IG charts

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