DAX: Mid-term upward trend under pressure

Currently the technical point of view does not look very well.

Source: Bloomberg

Two important supports are under pressure. The target could be elow this the price level at 8,000.

Below the psychological level at 9,000 and the mid-term upward trend line (since March 2009) the DAX would generate a new and significant sell signal. The German stock market could continue the downward movement to the former highs at 8,132/8,150 from the years 2000 and 2007.

A closing price on weekly basis above the mentioned supports could be the beginning of a technical countermovement in the direction of the lower trend line of the downward trend channel at 9,550.

The falling weighted moving average (40 weeks) shows an intact downward movement. This supports the scenario of decreasing share prices in Frankfurt.

German stock market DAX on weekly basis

Source: IG charts

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