DAX: Important trend line was defended

Last week the trend line at 8982/8952 was broken down significantly. Regarding this new sell signal the German stock market has continued its downward trend. But another support could be defended. 

bg_dax_1369829
Source: Bloomberg

The DAX has reached the next support at 8500 on daily and weekly basis. On the 16th of October the German stock market traded below this mentioned trend line at 8.355. At the end of this trading day the DAX closed above the level at 8500.

Currently we see a technical improvement. The countermovement could continue to the former support at 8982/8952. Above this trend line the situation would improve.

Below the support at 8500 the countermovement would be over. In this case the DAX could continue the downward trend to the very important trend line at 8132/8152. These are the highs of the years 2000 and 2007. 

German stock market DAX on weekly basis

DAX_UPDATE_17.10.2014_
IG Charts

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.