Established in 1974
185,800 clients worldwide
Over 15,000 markets

DAX: First damage report

Since the all-time high on the 10th of April the German stock market has lost more than 1,000 points.

bg_dax_1369829
Source: Bloomberg

The reasons were a mix of weaker than expected economic data in the U.S., the never- ending worries about Greece and some disappointing earning figures.

As a result of the last strong price decline we have a look on the weekly chart of the DAX. Currently the German stock market is testing the Fibonacci retracement (23.6 per cent) at 11,440. For the further development a weekly closing price above this level would be important.

Below the mentioned Fibonnacci retracement we see the upward trend line at 11,250. Further supports are the next Fibonacci level at 10,850 and the 40 week exponential moving average (EMA) at 10,595.

German stock market DAX on weekly basis

DEM_DAX_Woche300415
Source: IG Charts

Now we see the Big Picture on monthly basis. At this moment the DAX is testing the midterm upward trend line at 11,390. A closing price above this level on monthly basis would be important, too.

We see the 23.6 per cent retracement at 11,457. Below this level and the midterm upward trend line there are further supports at 10,862 (38.2 per cent retracement) and the 8-month exponential moving average (EMA) at 10,757.

German stock market DAX on monthly basis

DEM_DAX_Monat300415
Source: 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.

Find articles by analysts