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DAX in a superior downward trend

The German stock market started a technical countermovement in February.

bg_dax_1173615
Source: Bloomberg

But the Fibonacci retracement (50.0 per cent) at 10,065, the psychological price level at 10,000 and the weighted 200-days moving average at currently 9992 could not be overcome.

After that the Fibonacci level (61.8 per cent) at 9741 was broken down. We see further downside potential to the lower trend line of the downward trend channel at 9150. Below this price level the next psychological barrier at 9000 would be the technical target price.

In view of the moving averages the mentioned scenario is very likely. The mid-term weighted 200-days moving average and the short-term weighted 10 and 20 days at 9.780/9.671 moving averages shows an intact downward trend and are at the same time resistances.

German stock market DAX on daily basis

DAX daily chart
Source: IG charts

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