DAX: Important trend line was defended

Last week the trend line at 8982/8952 was broken down significantly. Regarding this new sell signal the German stock market has continued its downward trend. But another support could be defended. 

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Source: Bloomberg

The DAX has reached the next support at 8500 on daily and weekly basis. On the 16th of October the German stock market traded below this mentioned trend line at 8.355. At the end of this trading day the DAX closed above the level at 8500.

Currently we see a technical improvement. The countermovement could continue to the former support at 8982/8952. Above this trend line the situation would improve.

Below the support at 8500 the countermovement would be over. In this case the DAX could continue the downward trend to the very important trend line at 8132/8152. These are the highs of the years 2000 and 2007. 

German stock market DAX on weekly basis

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