DAX meets well known intersection-resistance

Currently the technical situation of the German stock market is a very interesting one.

Source: Bloomberg

The DAX reached the intersection-resistance at 10,000/10,065 on daily basis. The mentioned resistance consists of the psychological price level at 10,000, the falling weighted 200 days moving average (WMA) at 10,048 and finally the Fibonacci retracement at 10,065 (61.8 per cent).

To continue the current countermovement a closing price above the intersection-resistance would be necessary. The technical target price would be the upper trend line of the downward trend channel at 10,170.

The last try to overcome the mentioned resistances at the end of March was unsuccessful. Such a scenario could be repeated. In this case the Fibonacci retracement at 9741 and then the lower trend line of the downward trend channel at 9120 would be the next targets.

German stock market DAX on daily basis

Source: IG charts

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.