DAX: Correction continue

The trend line at 9792/9795 points was broken down last week. This was the beginning of the current correction. 

Source: Bloomberg

As a result the German Stock market has been testing the support at 9631/9647 points and the increasing 200-day-moving average (weighted) at 9664 points.

The Moving Average Convergence/Divergence (MACD) has generated a new sell signal on daily basis. The MACD line and the trigger line closed below the zero level last week. Other indicators show a negative scenario too. And so the investors are still waiting for a countermovement to the former support at 9792/9795 points.

A significant closing price above the mentioned supports would be very important. Target price is the new resistance at 9792/9795 points. Above this price level the German stock market could continue the upward trend to the highs at 10,015/10,048 points. 

German stock market DAX on daily basis / IG Charts

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