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The reason was the disappointing decision of the ECB. A bitter setback for the DAX from a technical point of view.
As a result of the weak performance the German blue chips returned to the downward trend channel. Furthermore some other supports such as the psychological level at 11,000, the Fibonacci retracement (50.0 per cent) at 10,861 and the weighted 200 day moving average (WMA) at 10,795 and were broken down.
The DAX now has reached the next Fibonacci level (61.8 per cent) at 10,495. A further test like the one in mid of November would be very helpful. In this case the mentioned former supports are the resistances again.
Hopes of a year-end rally could support the DAX. It begins on December 19 and ends on January 6 the following year. The German stock market posted an average price gain of approximately 3% in the last thirty years.