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.
After a bad start to the year two important supports were broken down.
At the beginning of the year the mid-term upward trend line at 10,270 and the psychological price level at 10,000 were broken down significantly. Furthermore the DAX has reached the lower trend line of the intact downward trend channel at 9,615.
The weighted 40 weeks moving average (WMA) has generated another sell signal. Since August 2015 the moving average has been showing a downward trend.
Below the lower trend line of the downward trend channel the DAX could continue his journey south to the trend line at 9,000. This is the lower limit of the former trading zone.
The technical situation would improve above the mentioned price levels and finally the upper trend line of the downward trend channel at 10,670.