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.
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.