DAX on the way to the top

It hadn't been an easy task, but the German Stock market was successful at it.

Source: Bloomberg

The intersection-resistance was broken up. As a result the DAX has been generated a new buy signal.

The psychological level at 11,000, the upper trend line of the downside trend channel at 11,005 and finally the 200 days simple moving average (SMA) at 11,100 made some problems in the recent weeks.

Currently the DAX has reached the next resistance on daily basis. It is the Fibonacci retracement (38.2 per cent) at 11,224. Above this level on closing price the Retracement (23.6 per cent) at 11,689 and then the next psychological level at 12,000 would be the technical target prices.

After the recent strong performance the German stock market is slightly overbought. A correction in the direction of the former resistances is possible.

German stock markets DAX on daily basis

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