DAX: First damage report

Since the all-time high on the 10th of April the German stock market has lost more than 1,000 points.

Source: Bloomberg

The reasons were a mix of weaker than expected economic data in the U.S., the never- ending worries about Greece and some disappointing earning figures.

As a result of the last strong price decline we have a look on the weekly chart of the DAX. Currently the German stock market is testing the Fibonacci retracement (23.6 per cent) at 11,440. For the further development a weekly closing price above this level would be important.

Below the mentioned Fibonnacci retracement we see the upward trend line at 11,250. Further supports are the next Fibonacci level at 10,850 and the 40 week exponential moving average (EMA) at 10,595.

German stock market DAX on weekly basis

Source: IG Charts

Now we see the Big Picture on monthly basis. At this moment the DAX is testing the midterm upward trend line at 11,390. A closing price above this level on monthly basis would be important, too.

We see the 23.6 per cent retracement at 11,457. Below this level and the midterm upward trend line there are further supports at 10,862 (38.2 per cent retracement) and the 8-month exponential moving average (EMA) at 10,757.

German stock market DAX on monthly basis

Source: IG Charts

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