DAX: No improvement in sight

As a result of the test of the lows at 9,320/9,302 the German stock market has returned into the downward trend channel.

Source: Bloomberg

But this was not a new buy signal. The outlook is ongoing poorly. There are too many resistances on the way north. One of them is the psychological price level at 10,000. This is the technical target price for a further countermovement.

Below the lower trend line of the downward trend channel at 9,530 the mentioned lows could be tested again. Afterwards we see another support at 9,000. This is the lower limit of a former trading zone.

The old and well-known trend following indicator, the 40 weeks weighted moving average (WMA), has been turning down significantly. This is a further sign of potential price losses.

German stock market DAX on weekly basis

Source: IG charts

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