DAX: Bad Big Picture

The Big Picture of the German stock market looks like not very well at this moment.

bg_dax_122082
Source: Bloomberg

After a bad start to the year two important supports were broken down.

At the beginning of the year the mid-term upward trend line at 10,270 and the psychological price level at 10,000 were broken down significantly. Furthermore the DAX has reached the lower trend line of the intact downward trend channel at 9,615.

The weighted 40 weeks moving average (WMA) has generated another sell signal. Since August 2015 the moving average has been showing a downward trend.

Below the lower trend line of the downward trend channel the DAX could continue his journey south to the trend line at 9,000. This is the lower limit of the former trading zone.

The technical situation would improve above the mentioned price levels and finally the upper trend line of the downward trend channel at 10,670.

German stock market DAX on weekly basis

DEM_120116
Source: IG charts

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.