DAX: Thanks to the moving average

The German stock market has been trading in a downward movement since April this year. Due to the Greek debt crisis the technical situation has been intensified in the recent weeks. But one important trend following indicator could stop the plunge.

Source: Bloomberg

We are talking about the simple 200 days moving average at 10,692. The DAX has tested the moving average successfully. After this the German stock market has turned upward. The mentioned index is now trading above the Fibonacci retracement (50.0 per cent) at 10,890 and the psychological level at 11,000.

Currently the DAX has reached two further resistances. These are the Fibonacci retracement (38.2 per cent) at 11,250 and the upper trend channel line at 11,255. A new buy signal would generate above this levels on closing prices.

In this case the technical target price would be the trend line at 11,454/11,467 in the daily chart.

German stock market DAX on daily basis

Source: IG Charts

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