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Due to this the German stock market tested the exponential 200 days moving average (EMA) in mid June.
After the successful test of the mentioned indicator a strong countermovement was the result. The DAX closed above the Fibonacci retracement (38.2 per cent) at 11,250 and the upper trend line of the short-term downward trend channel at 11,480.
Currently the German stock market is testing the trend line at 11,454/11,467. A closing price above this level would be very helpful. In this case the DAX could continue the recovery to the next Fibonacci retracement (23.6 per cent) at 11,694.
A return back into the trend channel would be a disappointment. Possible targets could be the Fibonacci retracement at 11,250 and the psychological price level at 11,000.