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As a result the DAX has reached one all-time high after another. In spite of the strong performance the German blue chips are overbought. However the investors are still waiting for a correction.
The Bollinger bands, the relative strength index (RSI) and the slow stochastic show an overbought situation. But in a strong trend phase the market can stay in such extreme areas for several days. Only when the oscillators have left the extreme areas and fall below 70 (RSI) and 85 (slow stochastic) will the consolidation begin.
In this case the upward trend line at 11,700 would be the first target of the correction. Below this level the support at 10,454/10,467 could be tested. The next significant support is at 11,022/10,846.
The midterm outlook is positive. Above the highs at 11,853/11,861 the psychological resistance at 12,000 would be the target price.