DAX: First technical damage

Regarding the announced sanctions against Russia the German stock market is under pressure again. 

DEM_DailyDAXchart31072014
German stock market DAX on daily basis / IG Charts

The trend line at 9631/9647 points and the lower trend channel line at 9620 points were broken down. Currently the DAX is trading below the 200-days moving average (simple and weighted). The current correction continues. The trend line at 9425 points could be the next target.

The Bollinger bands and the Relative Strength-Index (RSI) show an oversold situation on daily basis. A Countermovement to the mentioned lower trend channel line and the horizontal trend line would be possible.

On the daily chart we see the first technical damage. Another problem is the seasonal weakness in the summer, especially in the months of July to September. In the past decades the DAX lost value during this period. 

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.