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At the beginning of this week the People´s Bank of China had cut the reference rate of the currency Yuan. Due to this the German stock market was under pressure. Some supports were broken down.
These supports are the trend line at 11,454/11,467 and the Fibonacci retracement (23.6 per cent) at 11,250. But one indicator could stop the downward trend. The DAX has been testing the 200 days simple moving average (SMA) at 10,985 and the psychological price level at 11,000 successfully.
Currently the German stock market is trading in the direction of the former supports. Shortly before the heavy price fall the DAX actually failed due to the intersection-resistance at 11,640/11,692. This is an important level on daily basis. Above this resistance the German blue chips would generate a new buy signal. In this case the next psychological level at 12,000 would be the technical target price.