DAX with a new all-time-high

The German stock market has continued the recovery since mid-October. The highlight was a new all-time-high at 10,083 last week. Most important is the new buy signal on mid-term basis. 

Source: Bloomberg

The closing price above the psychological price level at 10,000 was the signal for further increasing prices. The first target price is the former trend line at 10,590. Regarding the correction phase from mid-September to mid-October the next target price is at 10,830.

The trading strategy with the Bollinger bands has generated a new buy signal on weekly basis. The DAX has closed above the upper band at the end of November. A sell signal would be generated below the lower band at currently 9197. The increasing weighted moving average (40 weeks) at 9540 shows an intact mid-term upward trend.     

The German stock market is not yet overbought. But for this case the last highs at 10,016/10,048 and the trend line at 9794/9795 could be tested. 

German stock market DAX on weekly basis

AUM_Daxchart 081214
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.