DAX uptrend maintained

Price at time of writing – 8591.

An 84-point decline since my last update on 23 September has taken the German index down by around 3% from its recent all-time high. 

Given the noisy background of fear-mongering emanating from US politics, this is a solid performance. The uptrend remains entirely intact.

In my last update I noted a new, isolated obstacle on the path towards my major target at 8972. I found this by adding a line to the chart representing an 8.33% rise from the minor low in early September, a Gann-percentage that will often trigger a degree of short-term resistance. And so it has proved to date. As I mentioned in that note, however, a rise to 8972 is still the most likely outcome, although we should stay aware of all the obstacles along the way. I will watch this level carefully for signals on any forthcoming retest. 

The DAX has a comfortable cushion beneath it before the uptrend becomes threatened. Minor support in a band defined as 8345-8373 needs to be breached before raising any concern. My current stop-loss recommendation is based precisely on this unlikely event occurring.

Recommendation: stay long. Central target 8972 (within a broader band defined as 8942-9048). The stop-loss can be activated on momentum below 8300.

German DAX chart


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. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial. 

Artiklar av våra analytiker