DAX: Big Picture with slight scratches

The Greek debt crisis had a negative impact on the long-term chart of the German stock market in the recent weeks. But the bull market is not over yet.

bg_bull 3
Source: Bloomberg

The upward trend line from September 2011 was broken down end of May. This was a disappointment from the technical point of view. The DAX is now trading in a sideways movement. 

The situation would be dangerous below the lower limit of the trading range at 11,166/11,193. In this case we see further downside potential to the psychological support at 11,000 and after that to the next mid-term upward trend line at 10,200.

The situation would improve above the upper limit of the sideways movement at 12,400. The psychological level at 13,000 would be the technical target price.

German stock market DAX on monthly basis

Source: IG Charts

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.