DAX: Thanks to the moving average

Due to the Greek debt crisis the German stock market came under pressure in the recent weeks.

Source: Bloomberg

As a result some supports were broken down. These were the Fibonacci retracements at 11,698 and 11,250, the short-term 55 days moving average (EMA) at 11,527 and the trend line at 11,454/11,467.

After the recent weak performance the DAX was oversold on the daily basis. But the German blue chips have received support from the increasing 200 days moving average (EMA) at 10,964. The indicator has been tested successfully.

The DAX is now on the way to the mentioned former supports. Above the highs at 11,891/11,893 from May this year the popular German index could continue the upward movement to the psychological price level at 12,000 and the all-time highs at 12,400.

Source: IG Charts

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