DAX: Psychological support in focus

Since mid of April the German stock market has been trading in a correction mode and a downside trend channel.

Source: Bloomberg

The DAX hast lost some supports in the recent days. The situation from the technical point of view is a little bit critical.

Currently the DAX is testing the Fibonacci retracement (38.2 per cent) at 11,250. Below this support on closing price the lower limit of the mentioned trend channel at 11,160 would be the next target.

We see a very important support zone at 11,000 on the daily chart. This is a psychological level. Further supports are the increasing 200-days weighted moving average (WMA) at 10,996, the trading range at 10,987/10,852 and finally the next retracement at 10,892 (50.0 per cent).

German stock market DAX on daily 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.