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.
Due to this the DAX jumped over the psychological price level at 10,000. The next resistance is the trend line at 10,100.
Above this level the next resistance is waiting at 10,520. We see the primary downward trend in the weekly chart. A closing price on weekly basis would be necessary to overcome this technical hurdle. In this case the DAX could continue the current upward movement to the former mid-term upward trend line at 11,200.
But the falling weighted 40 weeks moving average (WMA) could cause some problems. Furthermore the mentioned and familiar trend following indicator shows downwards. Another test of the mid-term upward trend line (since March 2009) at 9305 could be possible.