The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.
The German blue chips reached the support at 8982/8952 on the 8th of October. But this trend line was not broken down. This was very important for the DAX. The mentioned price level was already tested in March and August this year.
The oscillator Relative Strength Index (RSI) with the parameters 21 days and the oversold and overbought levels at 40 and 60 shows an oversold situation. Above the level at 40 the DAX could start an improvement. Target price would be the former support at 9345/9435.
However the technical situation is difficult. The DAX remains in a sideways movement. A new buy signal would be generated above the resistance at 9800. Currently this scenario is not realistic.