DAX takes a break

Since the low in mid-October at 8350 the German Stock market has started an impressive improvement. 

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Source: Bloomberg

Until the beginning of November the DAX has won more than 1000 Points. However the trend line at 9425 and the weighted moving average (200 days) at 9.440 could not be broken up.

The DAX had to retreat. Subsequently the short-term upward trend line at 9330 and the Fibonacci retracement at 9305 were broken down. The next supports are the Fibonacci level at 9124 and the slightly increasing weighted moving average (50 days) at 9138. Below these supports the trend line at 8982/8952 could be the next target.

In conclusion the German stock market is trading in a sideways movement. The technical situation would improve above the trend line at 9425/9440 and the broken upward trend line at 9.480.

A year-end rally would be helpful. The DAX has shown a very strong seasonal movement in the last thirty years from mid-December to the beginning of January.  

German stock market DAX on daily basis

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IG Charts

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