DAX picture with some scratches

Since the end of August the chart picture of the German stock market has not been looking very good. 

Source: Bloomberg

At this time both the midterm upward trend line at 9720 and the support at 9425 were broken down due to the situation in the eastern Ukraine.

From the high at 10,048 (mid of June) the DAX lost more than 1,000 points to the low at 8904 at the beginning of August. The support at 8952/8982 has been tested on the closing price. Targets are now the mentioned trend line at 9425 and the moving weighted average (40 weeks) at 9516.

The current situation would improve above the former upward trend line at 9860 and the new resistance at 9794/9795 A new buy signal would generate above the all-time-high at 10,048. 

German stock market DAX on weekly 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.