DAX: Ongoing trouble with Greece

At the beginning of this week the development in Greece was the main negative factor for the European financial markets.

Source: Bloomberg

As a result the German stock market has been testing the Fibonacci retracement (23.6 per cent) at 11,695 and the 55 days exponential moving average (EMA) at 11,667. So far with success.

The crisis in the Mediterranean nation would be the main issue for the coming days and weeks. And therefore a further test of the mentioned supports is likely. Below this price levels the DAX would generate a short-term sell signal. In this case the trend line at 11,454/11,467 could be achieved.

Currently the technical situation is neutral. Only above the highs at 11,891/11,893 the German stock market could continue the upward movement. The psychological level at 12,000 would be the first target price. Above this level we see further upward potential to the highs from April 2015 at 12,400.

German stock markets DAX on daily basis

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