DAX: Important support with no chance

Last week saw a focus on the important support at 8982/8952. But this trend line had no chance and was broken down. 

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Source: Bloomberg

The German stock market has generated a new sell signal. Nevertheless the long-term upward trend is intact.

We see the long-term chart on monthly basis. On this time level the DAX is trading below the mentioned support. The next important support is at 8132/8152. These are the highs of the years 2000 and 2007. Regarding the new sell signal a test of this former resistance is possible.

On the long-term basis (“Big Picture”) the DAX is trading in an intact upward trend channel. Below the lower trend channel trend line at 7700 the bull market would be over. But this is currently a rather improbable scenario.

Regarding the price losses in the most recent week the German stock market is now oversold. A short-term recovery to the former support at 8982/8952 is possible.   

German stock market DAX on monthly basis

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IG Charts

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