DAX in small correction again

The German stock market had some problems with the upper limit of the sideways market phase at 12,221.

Source: Bloomberg

The DAX broke this resistance at the beginning of April. As a result the Blue Chips has reached a new yearly high at 12,411.

At this time the German stock market was overbought. This was the start of another correction. Currently the DAX is trading below the trend line at 12,221. But there is no reason to panic. We see some stable supports on daily basis. These are the 21- days moving average (EMA) at 12,070 and the 38-days moving average (EMA) at 11,937, the lower limit of the sideways market phase at 11,861/11,853 and the Fibonacci retracement (23.6 per cent) at 11,750.

Above the new resistance at 12,411 the DAX could continue the upward movement. Considering the sideways market phase the technical target price is at 12,600.

German stock market DAX on daily basis

Source: IG Charts

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