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With the index down just 1.8% since my last update on 5 August, there is no change in the recommendation either, with my upside target remaining as 8972.
German manufacturers have had a new headwind to deal with of late: namely the aggressive devaluation of the Japanese yen. Clearly the manipulation of the yen downwards has given Japan an edge over its great manufacturing and exporting rival. Evidence of this can be seen in last week's revised growth data, which showed that Japan's economy expanded at a faster rate in the second quarter than initially reported. Despite this, the euro still remains low (in a German context) and improving markets in the UK and Europe should absorb the slack in production capacity.
The support band on the DAX is defined as 8026-8075, and remains very firm. Only a break below this band would seed some doubt in the current uptrend. The index is trading in a tight range just below its all-time high, and requires a break above 8373 in order to trigger the next important stage of its advance. This is likely to take the index towards my target band of 8942-9048 very quickly.
Recommendation: stay long. Target 8972. Only a fall below 8000 would cause concern, and can be used as a trigger to apply stop-losses.