DAX: Big Picture with slight scratches

The Greek debt crisis had a negative impact on the long-term chart of the German stock market in the recent weeks. But the bull market is not over yet.

bg_bull 3
Source: Bloomberg

The upward trend line from September 2011 was broken down end of May. This was a disappointment from the technical point of view. The DAX is now trading in a sideways movement. 

The situation would be dangerous below the lower limit of the trading range at 11,166/11,193. In this case we see further downside potential to the psychological support at 11,000 and after that to the next mid-term upward trend line at 10,200.

The situation would improve above the upper limit of the sideways movement at 12,400. The psychological level at 13,000 would be the technical target price.

German stock market DAX on monthly basis

Source: IG Charts

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