DAX: A correction only

Having reached a new high at 10,048 points on the 20th of June the German stock market has started a correction. 

Source: Bloomberg

At first the DAX fell below the level of 9900 points which seemed to be the beginning of the consolidation.

On 26th of June the German blue-chips stocks traded on intra-day-basis below the support at 9792/9795. At the end of the day the index closed above the mentioned level.

This could have been the rebound in direction of the high at 10,048. Above this level the DAX would generate a new buy signal. Price target is the level at 10,650.

Below the support at 9792/9795 the German stock market has got two supports. These are the trend line at 9631/9647 and the increasing 200-day moving average (weighted) at 9607.

Despite the currently correction the DAX could continue the midterm upward. The indicator mixture of MACD (Moving Average Convergence/Divergence), Momentum, RSI (Relative Strength Indicator) and Williams %R on monthly basis show intact buy signals. 

German stock market DAX on daily basis / source: IG charts

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