DAX: Bad Big Picture

The Big Picture of the German stock market looks like not very well at this moment.

Source: Bloomberg

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.

German stock market DAX on weekly basis

Source: IG charts

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